FX.co ★ The expected decline of the euro continues

EUR / USD

Events in the market develop in their own way. The euro zone's balance of payments for April was expected to came out worse than the forecast (EUR 28.4 billion versus USD 30.3 billion). While the number of new home construction in the US for the month of May showed better than expected figures at 1.35 million versus 1.31 million and 1.29 million in April, this is the highest figure since August 2007. The opening remarks ECB head Mario Draghi during the opening of the banking conference, increased fears about the growth of the world economy. The single European currency fell by 32 points.

The price was able to overcome the "signal" level of 1.1510 yesterday, and we are waiting for this to happen again in the near future. The target level 1.1387 is opened - support for the trend line.

This movement may be triggered by the speeches of Jerome Powell and Mario Draghi during the ECB conference. Also, the home sales in the US secondary housing market showed an estimate of 5.52 million in the May against 5.46 million in April.

On the 4-hour chart, Marlin's oscillator signal line touched the zero line that separates the growth zone from the drop zone for the second time. This may indicate about the the sharper upcoming decline.

* The presented market analysis is informative and does not constitute a guide to the transaction.