The EURUSD pair is losing ground for the second day in a row, mainly due to the threat of Italy to break EU fiscal rules. Matteo Salvini, the leader of the right-wing League of Italy party, said that the government could soon increase its debt level, disregarding EU rules providing for a debt size not exceeding 3%. Such a violation of EU fiscal rules can put a lot of pressure on the single European currency.
Yesterday EURUSD touched the low point of the day near the 1.1180 levels. At the moment, the pair is trading with a slight increase, maintaining a bearish mood, at the mark of 1.1210. Forex trading recommendations for this pair: Sell. Entry point - 1, 1212. Take Profit - 1, 1196. Stop Loss - 1, 1240.
According to the released earlier data, the GDP of the Eurozone for the I quarter of last year amounted to 1.2%. However, Germany’s GDP for Q1 of last year was 0.1% lower than the consensus estimate of 0.7%. The US dollar was negatively impacted by weak US retail sales data for April.
The optimism of a single European currency was increased by the words of US President Trump, who decided to postpone the introduction of tariffs on cars for about six months. This news gave an additional boost to the European auto industry. After this news, the EURUSD pair managed to quickly overcome the 1.12 mark, updating the daily highs at 1.1224. However, the pair failed to consolidate at this level.
Forex trading recommendations for other pairs:
GBPUSD: Buy. Entry point – 1, 2845. Take Profit – 1, 2871. Stop Loss – 1, 2801.
USDCAD: Buy. Entry point – 1, 3432. Take Profit – 1, 3450. Stop Loss – 1, 3401.
EURJPY: Sell. Entry point – 122, 77. Take Profit – 122, 55. Stop Loss – 123, 14.
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