26.06.201811:05 Forex Analysis & Reviews: The last spurt of the euro goes upward

EUR / USD pair

This week, the market started vigorously. The earliest news is about the US intention to prohibit companies with Chinese participation from buying technological American companies. Finance Minister, Steven Mnuchin, has expanded to companies with any foreign participation, not only with Chinese. The stock market (S&P500) lost 1.37%, Nasdaq technology index fell by 2.09%. As a result, the dollar index fell by 0.25%, with it the euro increased by 47 points.

Macrostatistics was in favor of the dollar. Ifo's business sentiment index in Germany fell from 102.3 in June (revised from 102.2) to 101.8, while sales of new homes in the US increased from 646 thousand (down from 662 thousand) to 689 thousand in May. It coincides with the data on November of 2017 and close to the August 2007.

The price, therefore, picked up the rising scenario and went to the resistance of the trend line of the price channel (1.1744). Since this is the top line of the price channel, overcoming it with a price will entail a revision of the technical picture. At the moment we expect the price to turn down, as the current growth is primarily due to psychological factors in the market.

Thus, after testing at the price of the upper border of the price channel, we wait for the price to return to the support of indicator lines at 1.1650 and further price decrease to the lows on June 21 and May 29 at 1.1510.