EUR/USD consolidates after failing to break last week's high

Technical Analysis

Author: Justin Low | eurusd

EUR/USD trades in a 12 pips range on the day

Little action of note in the pair so far today, but the move towards the upside came after the pair broke free of the 100-hour MA yesterday here.

As mentioned then, the break of the 100-hour MA opens up a retest of the high near 1.2400 and the pair did try for that but ultimately failed in the first attempt.

The consolidation near the highs though is an encouraging sign for buyers, as it does mean that the pair continues to look poised for the next move higher. A break above 1.2400 will open up a move towards the 1.2446 level which is the 8 March high:

But for me, the more interesting part is the dollar side of the equation. Trump's tweet here yesterday certainly makes you wonder what his actual game plan is. By now, it's clear that he wants a weaker dollar no matter what.

His tweet made little sense pointing towards the two currencies (one weakening due to his sanctions and the other has been strengthening against the dollar over the past year) mentioned, but it highlights the agenda in place by Trump.

With the US twin deficits continuing to grow larger, it's no surprise why a weaker dollar would be much sought after by Trump.

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