Trading news

EUR/USD Triple Top Setup - Is It Worth Taking a Sell Now? 

The EUR/UD currency pair failed to extend its previous day's bullish rally. They dropped below the 100-day simple moving average (SMA) support at 1.0957, mainly due to the broad-based U.S. dollar strength in the wake of intensifying tensions between the United States and China. 

On the other hand, the European Union common fund proposal and modest recovery sentiment in the German economy were trying to limit the pair's further losses. At the moment, the EUR/USD currency pair is currently trading at 1.0964 and consolidating in the range between 1.0957 and 1.0990.

At the US-China front, the U.S. President Donald Trump bolstered his attack on China while accusing the dragon nation of spreading coronavirus and running a massive disinformation campaign. As well as, the White House published 20-pages of a report to Congress in which Trump's administration criticized China's military and economic policies.

The on-going worries between the world's largest economies are getting worse by time as both nations have started using words like item bombs for each other, which will likely keep the risk sentiment under pressure and push the U.S. dollar to take bids as a safe-haven demand in the market. As in result, the currency pair may face further losses ahead.

On the positive side, the optimism arising from the recently announced European Union (E.U.) common fund proposal could limit losses in the EUR/USD currency pair. As we all knew, France and Germany have injected a 500 billion EUR ($543 billion) Recovery Fund to support such a sector that was badly beaten by the coronavirus pandemic, which gave support to the pair overnight.

If talking about the yesterday evening, the EUR/USD currency pair rose above 1.10 level from the low of 1.0919 mainly after the release of German survey data, which showed a bigger-than-expected rise in investor sentiment.

At the USD front, the upbeat sentiment of investors about the global economic recovery from the coronavirus ruined after the report from the U.S. Federal Reserve in which the minutes gave warning that the coronavirus was still a threat to economic and financial stability. They also hinted about more stimulus measures for economic recovery, which gave support to the broad-based U.S. dollar and contributed to the pair's declines. 

The reason for a recovery rally in the U.S. dollar could also be attributed to the on-going tension between the US-China. Whereas, The U.S. Dollar Index that tracks the greenback against a basket of other currencies moved 0.24% to 99.370, just under the $100 mark, by 12:07 AM ET (5:07 AM GMT).



Support Resistance 

1.0932        1.1014

1.0884       1.1048

1.0849       1.1097

Pivot Point 1.0966

The bullish bias doesn't seem to pick up in the EUR/USD pair despite the release of positive PMI figures from the Eurozone. The pair is currently trading at 1.1008 level, where the bullish breakout of 1.0080 can trigger buying unto 1.1100 level. But this 1.10080 level is giving a hard time to buyers. Anyways, the support holds around 1.0966, which also marks the pivot point area for the EUR/USD. A bearish breakout of this level can drive sharp selling until 1.0893. Good luck! 

EagleFX Review

Thursday, 21 May, 2020 / 1:32

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source :

Trading news

 

Euro soars after ECB’s surprise; dollar extends slide ahead of NFP

  Euro skyrockets after ECB increases pandemic stimulus by more than [...]

Posted on Friday, 05 Jun, 2020 / 8:47 under

Is Gold sunny no matter what the weather is?

By Giles Coghlan, Chief Currency Analyst at HYCM The recent weather in the UK [...]

Posted on Friday, 05 Jun, 2020 / 8:40 under

USD/CHF: The bear is in town

USD/CHF has been bearish on the daily chart. The pair produced a bearish [...]

Posted on Friday, 05 Jun, 2020 / 7:46 under