The Euro / Dollar Has Finally Waited For A Long Time.

This week the US dollar has had a bad week, because there is no indication that the US is reversing the trend of slower economic growth since late 2015.

In fact, not only did the situation seem worse in the first quarter of this year, but there was no improvement in the 4 quarter.

US data show the first quarter.

Very mild, GDP grew by only 0.5%, down 0.7% from the expected growth rate, and the previous value was 1.4%.

On the contrary, data released on Friday showed that GDP grew by 0.6% in the first quarter of the year, up 0.4% from the expected growth rate.

Since the beginning of this week, US data has been disappointing, housing data is weaker than expected, orders for durable goods have declined, initial numbers have increased and consumer confidence has declined.

The only good news comes from the increase in personal income, but in view of the shrinking expenditure, this positive data is basically interpreted as negative, because it means consumption is decreasing.

The situation is exacerbated by the fact that the Fed meeting did not provide too much support, because at the same time that the interest rate remained open and the concern for external risks declined.

No definite interest rate point was specified.

The market is expected to fail again in June, leading to a setback in the dollar.

Over the past 5 days, the euro / dollar has risen steadily and has come below the critical level of static resistance level of 1.1460.

FXStreet chief analyst Valeria Bednarik pointed out that the daily chart shows that

Since March, it has rebounded near the 38.2% withdrawal position of the rally in April, and the technical index has risen to the top of the central axis, so these support for the rise of the currency pair next week will continue to rise in the next 1.1220 weeks.

Valeria Bednarik pointed out that in the next few days, the initial support for the currency would be 1.1360, but only 1.1310 would be able to confirm the downtrend, and then the exchange rate would further fall to the 1.1220 region.

There will be interest in buying around this level, because the market will continue to be short for the long term rise of the US dollar.

However, in the past year, the 1.1460 level has always been a "hard bone", even if the breakthrough can not confirm the rise.

As a matter of fact, the exchange rate will rise slightly above this level to clear up the pressure and reduce pressure, which will rise later.

The rally will be confirmed, and the exchange rate will rise steadily to 1.1500 level, which will open the door to test the 1.1714 level of August 2015.