FX.co ★ FxTaylor | EUR/USD (part 80)

Hi, everyone!


Fundamental analysis

As we know, the situation in the United States is rather tense. After supporters of US President Donald Trump caused a riot and violent attack in the Capitol, lawmakers accused Trump of it. That is why he is likely to face impeachment.

However, even the former President will be accused of riots near the Capitol building as this is a direct attack on the country's democracy. The Supreme Court of the United States may find Donald Trump guilty and recognize him as a criminal and a traitor to the homeland.

Technical analysis

Yesterday, the euro/dollar pair pulled back down to the level 1.2140, where it found support. In the early European session, the currency pair is likely to come under additional pressure. However, today I expect pressure in the upward direction, since yesterday the price failed to break through the level of 1.2132 downwards. This is a sign of a broken bearish trend.

Well, some might say that the American session closed during the pair's decline, but this is not the case. Although one can safely believe that the euro/dollar pair is preparing for a reversal towards the lower levels such as 1.2000 and 1.1900, the quotes will hardly make a deep downward movement. The pair will not be able to go down below the 1.1900 mark, as market participants have placed a lot of pending orders in this area.