USD: searching for the right direction

With the EUR/USD cross trading at the moment at 1,1388 gaining a slight 0,14%, the negative 6-day trend which led the pair to loss more than 200pips in less than a week, touching a 1,1369 low during the night, seems to be over.

The European currency continue to traded with a bid tone against its american peer, while the dollar is going down after the recent strength. Meanwhile the US Dollar Index is trading down 0,10% at 94,15.

Reasons for this movement could be find in the Asian investors sentiment who, after the recent news from the Asian markets, are now buying safe-haven currencies like Euro, feeding its gains.

Very important is the Fed’s situation too, which now have big doubts regards the next move to bring interest rates to a normal level: the hike expectations for June are now just 8%, while they are relatively high (50%) if we consider the end of 2016.

During today’s session we expect a consolidation of the EUR/USD cross, while the eye remains on the Friday’s retail sales data and the statements of the Fed’s speakers this week, which could give a stronger direction to the pair.

Looking at the chart, the cross could find the first immediate resistance at 1,1431 after which the streets would be free to gain the 1,1479 level (6 May high). On the flip side a first significant support in seen at 1,1350 after which the cross could test the second one at 1,1305.

EUR:USD 11mag

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