FX.co ★ EUR / USD on November 28: Revelations of Donald Tusk and optimism of Christine Lagarde

EUR / USD - 4H.

On November 4, the EUR / USD pair fell to the correctional level of 61.8% - 1.0995 on the 4-hour chart and, after the formation of two bullish divergences at the CCI and MACD indicators, reversed in favor of the European currency and began the growth process in the direction of the level corrections 50.0% - 1.1030. However, the general mood of traders has not changed for a long time, as eloquently indicated by the downtrend corridor, within which the pair continues to trade.

It makes no sense to review the entire background of the previous day, as traders did not pay any attention to the reports. All economic reports from America in no way helped the American currency, moreover, today the euro-dollar pair began to grow, which, unlike yesterday's miserable fall, was not caused by any news. Today, traders do not expect any economic news from the European Union or the United States at all. The activity of traders is likely to remain low, since yesterday, even quite important news could not stir up the market.

Earlier, I wrote that Donald Trump is sleeping and sees the EU collapse, which is why he strongly supports Boris Johnson and Nigel Faraj and even openly declares that he supports Brexit and preferably without any agreements between London and Brussels. Thus, the motivation of Donald Trump is obvious to many traders and simple "viewers". EU officials have not spoken about this, only Jeremy Corbyn, who has long fallen out of favor with Trump and is Johnson's main opposition opponent, has several times declared Trump's unhealthy interest in diverging the ways of the UK and the EU. Now, finally, comments from the European Union followed, where European Council President Donald Tusk said in an interview that the US leader openly welcomes Britain's exit from the EU. The question is why? In addition to this, Tusk calls Europe a "trade enemy" and questions the value of NATO. According to Tusk, "for the first time in history, the American president openly supports the collapse of the European Union, and for the EU this is perhaps the most difficult challenge." This concern of Tusk is also of concern to traders. Firstly, this wording from the President of the European Council significantly increases the likelihood of a trade war between the European Union and the United States, which is currently paused due to the ongoing trade war between the United States and China. However, in the future, it will be quite possible to expect a conflict between Brussels and Washington. Secondly, EU leaders themselves do not hide their attitude towards the American president and, consequently, towards America itself, which, in their opinion, as in China's opinion, often "gets into trouble."

At the same time, Christine Lagarde declares that confidence in the euro is now at maximum values. About 76% of Europeans support the idea of a single currency, and, according to Ms. Lagarde, this is the cement that holds our economic space together. Given the complication of relations with America and the possible loss of Britain, the EU really needs to remain as united as possible.

Forecast on EUR / USD and recommendations to traders:

On November 28, traders can continue to move the pair up, in favor of this, there are rebounds from the Fibo level of 61.8% and bullish divergence. I consider the information background to be quite strong, but, unfortunately, the activity of traders remains very low. Thus, I recommend further selling the pair if consolidation occurs under the correction level of 61.8% with a target of Fibo level of 76.4% - 1.0952.

The Fibo grid was built at the extremes of October 1, 2019, and October 21, 2019.