Yesterday’s trade saw EUR/USD within the range of 1.0612-1.0915. The pair closed at 1.0660, falling 1.90% on a daily basis, or the first loss in four trading days.
At 7:47 GMT today EUR/USD was up 0.19% for the day to trade at 1.0678. The pair touched a daily high at 1.0695 at 6:30 GMT.
Fundamentals
Euro area
Current Account
At 9:00 GMT the European Central Bank is expected to report on the regions current account balance for January. The seasonally adjusted current account produced a surplus at the amount of EUR 17.8 billion in January, which marked a 34th consecutive month, during which the balance was positive. However, the figure has been the lowest since September 2013, when a surplus of EUR 13.7 billion was reported.
The current account reflects the difference between savings and investments in the Euro area. It is the sum of the balance of trade, net current transfers (cash transfers) and net income from abroad (earnings from investments made abroad plus money sent by individuals working abroad to their families back home, minus payments made to foreign investors).
A current account surplus indicates that the net foreign assets of the region have increased by the respective amount, while a deficit suggests the opposite. A country/region with a surplus on its current account is considered as a net lender to the rest of the world, while a current account deficit puts it in the position of a net borrower. A net lender is consuming less than it is producing, which means it is saving and those savings are being invested abroad, or foreign assets are created. A net borrower is consuming more than it is producing, which means that other countries are lending it their savings, or foreign liabilities are created. A contracting surplus or an expanding deficit on the areas current account usually has a bearish effect on the euro.
United States
Fed Speakers
The President of the Federal Reserve Bank of Atlanta, Dennis Lockhart, is scheduled to take a statement at 14:20 GMT. His remarks may determine a positive or a negative shorter-term trends.
At 15:30 GMT the President of the Federal Reserve Bank of Chicago, Charles Evans, is expected to take a statement. He is also a member of the Federal Open Market Committee (FOMC), the body in charge of monetary policy implementation.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0729. In case EUR/USD manages to breach the first resistance level at 1.0846, it will probably continue up to test 1.1032. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1149.
If EUR/USD manages to breach the first key support at 1.0543, it will probably continue to slide and test 1.0426. With this second key support broken, the movement to the downside will probably continue to 1.0240.
The mid-Pivot levels for today are as follows: M1 – 1.0333, M2 – 1.0485, M3 – 1.0636, M4 – 1.0788, M5 – 1.0939, M6 – 1.1091.
In weekly terms, the central pivot point is at 1.0621. The three key resistance levels are as follows: R1 – 1.0782, R2 – 1.1069, R3 – 1.1230. The three key support levels are: S1 – 1.0334, S2 – 1.0173, S3 – 0.9886.
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