Equities drop, dollar rises after weak US consumer confidence


Stocks were slammed and the EURUSD pair dropped circa 60 pips from daily highs and was trading at around 1.0830 during the US session on Tuesday as the greenback rallied strongly after weak US data.

After plunging in March, expectations were for The Conference Board confidence survey to crash even further in April as COVID concerns began to rage, and lockdowns went nationwide. 

The Conference Board's headline index plummeted by 31.9 points to 86.9, the sharpest drop since 1973 to its lowest since May 2014.

It looks like the EURUSD pair is posting higher highs and higher lows, as evident from the two-hour timeframe. That is a bullish sign, and as long as the pair trades above the short-term trendline of 1.0820, the near-term outlook could be optimistic.

The next support is at 1.0810, where previous lows are seen, and if bears push the euro below this level, we could see a quick decline to the April' April's 1.0740.

Alternatively, the resistance could be at 1.0860 and afterward at today's highs of 1.0880.

Volatility in the FX markets has returned to its dull state, and compared to equity markets; intraday movements are minimal.
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