A quiet begin to the week for EUR/USD as sellers keep in management
Regardless of loads of current commentary in regards to the greenback probably struggling a demise on the again of the Fed pausing its price hike cycle and the US economic system struggling on account of the US-China commerce dispute, the buck is holding agency in opposition to the euro with the latter having worse issues to cope with presently.
Lately, German financial knowledge has been abysmal to say the least and early indicators from PMI surveys point out that the economic system can also be experiencing a sluggish begin to the 12 months. Add to the truth that German yields are seen declining additional and cash markets are pricing in much less likelihood of an ECB price hike, it is powerful to search out causes for the euro rally strongly in opposition to the greenback.
Even from a technical perspective, sellers in EUR/USD stay in management because the draw back momentum holds agency. Worth is but to interrupt away from the downwards trendline and that can proceed to maintain placing strain on the pair in the direction of the 1.1300 deal with.
For patrons, breaking that trendline will solely be step one as additional resistance is seen round 1.1350 adopted by the 100-hour MA (purple line) @ 1.1361. The latter is essential for patrons to interrupt above in an effort to put an finish to the near-term draw back momentum.
Trying forward, there is not a lot on the calendar that can assist to affect merchants at the moment so it is all about looking ahead to the technical ranges in the interim. The downwards trendline would be the key degree to be careful for in any potential return again to the upside whereas assist and bids round 1.1300-10 would be the key space sellers will probably be eyeing to interrupt beneath.