PrimeXBT would like to call your attention to a special analysis overview of EUR/USD.
Fundamental Analysis:
Last week’s US jobs report triggered some selling pressure on the greenback, subsequently leading a trading range in the US dollar index (DXY) to form. Yesterday, DXY broke lower from the range, signaling more short-term weakness.
The U.S. dollar is largely unchanged during European trading early on Thursday, as a degree of calm prevails following the signing of the China–United States trade deal.
The signing of the much-anticipated phase one trade agreement between the U.S. and China should draw a line under 18 months of tit-for-tat tariff hikes that have hurt global growth. It should also result in a calmer market in 2020, although underlying tensions between the U.S and China still remain.
“The U.S.-China deal implies that the amount of uncertainty related to trade war declines significantly in the short-term,” according to a research note from Tuuli Koivu at Nordea.
Technical Analysis:
Recently, EURUSD’s price broke through the resistance of the descending channel. The dollar has shown some weakness driving EUR/USD above its 200-day moving average to set a bullish tone.
It might be too early to confirm if EUR/USD has resumed higher within the upward trend that started in October, but in the near-term, the pair certainly looks like it is bound to see more upside.
The next area of resistance for the pair comes at the 1.11985 level. This level has held the pair lower on a few occasions in mid-December and early January.
The strong support zone for the pair is seen at 1.1136 - 1.1119. Additionally, the mentioned moving averages reside near it. Beyond that, further support is seen at 1.1093.
Share your thoughts about this trade idea in the comments section below, and remember to stay tuned for future technical analysis, news, updates, and more from PrimeXBT.
Fundamental Analysis:
Last week’s US jobs report triggered some selling pressure on the greenback, subsequently leading a trading range in the US dollar index (DXY) to form. Yesterday, DXY broke lower from the range, signaling more short-term weakness.
The U.S. dollar is largely unchanged during European trading early on Thursday, as a degree of calm prevails following the signing of the China–United States trade deal.
The signing of the much-anticipated phase one trade agreement between the U.S. and China should draw a line under 18 months of tit-for-tat tariff hikes that have hurt global growth. It should also result in a calmer market in 2020, although underlying tensions between the U.S and China still remain.
“The U.S.-China deal implies that the amount of uncertainty related to trade war declines significantly in the short-term,” according to a research note from Tuuli Koivu at Nordea.
Technical Analysis:
Recently, EURUSD’s price broke through the resistance of the descending channel. The dollar has shown some weakness driving EUR/USD above its 200-day moving average to set a bullish tone.
It might be too early to confirm if EUR/USD has resumed higher within the upward trend that started in October, but in the near-term, the pair certainly looks like it is bound to see more upside.
The next area of resistance for the pair comes at the 1.11985 level. This level has held the pair lower on a few occasions in mid-December and early January.
The strong support zone for the pair is seen at 1.1136 - 1.1119. Additionally, the mentioned moving averages reside near it. Beyond that, further support is seen at 1.1093.
- Support Zone: 1.1136— 1.1119
- Resistance Target Levels: 1.11985, 1.1239
- Day's Range: 1.11311 — 1.1172
- Volume: 108.685K
Share your thoughts about this trade idea in the comments section below, and remember to stay tuned for future technical analysis, news, updates, and more from PrimeXBT.
Trade active:
EUR/USD's touched the support line
