Forecast for EUR / USD as of September 18, 2018
EUR / USD
As a result of Monday, the euro grew by 60 points due to the uncertainty of the immediate results of the tariff war between the US and China. China is ready to abandon further trade negotiations, if President Trump will raise tariffs for the forthcoming volume of $ 200 billion. But the US decided to lower the bar of duties from 25% to 10%. Against this background, the decline in the index of business activity in the manufacturing sector of New York in September from 25.6 to 19.0 was perceived by investors more sensitively. The US stock index S & P500 fell by 0.56%.
Technically, there was a turn from the balance line on the chart of the daytime timeframe. On H4, the price was fixed above all indicator lines. Now, they serve as a strong support, as they currently converge to one point.
At 08:15 London time, the head of the ECB Mario Draghi on the prevention of the development of crisis processes in the banking sector. Perhaps in this section, a bit will be said about the ECB’s monetary policy, but it is unlikely that something new will be added to the well-known monetary policy. The index of business activity in the US housing market from NAHB for September is expected to decrease from 67 to 66. It is likely that investors will take advantage of further uncertainty and will continue buying the euro. Objectives: 1.1750, 1.1832 (the Fibonacci level is 123.6%). Overcoming 1.1830 will allow the price to move to 1.1900 (Fibonacci level of 138.2%).
In general, price development occurs in a wide range of 1.1512-1.1750, the upper limit of which has a strong resistance. Significant news should come in order for investors to decide the upper limit to attack.