European Session EURUSD Focus on Draghi Speech & Trade War
EURUSD Technical Overview:
Day Trading Range: 1.1665 - 1.1790
Key Resistance: 1.1720 - 1.1745 - 1.1768 - 1.1788
Key Support: 1.1688 - 1.1665 - 1.1635 - 1.1612
Technical Indicator:
RSI: Indicators shows upside bias in a day.
MACD: MacD having bullish trend.
Moving Avg: SMA55 (1.1626) & SMA200 (1.1568) are strong support for EURUSD.
Technical Idea:
Pivot: 1.1665
Most Likely Scenario: long positions above 1.1665 with targets at 1.1728 & 1.1755 in extension.
Alternative scenario: below 1.1665 look for further downside with 1.1635 & 1.1614 as targets.
Fundamental:
A bigger rally above 1.17 could be on the cards if ECB's Draghi plays down risks arising out of trade wars and the stock markets pick up a strong bid.
On the economic data front, the final Euro-zone CPI confirmed the flash readout of 2.0% y/y in August and remained supportive of the positive tone surrounding the shared currency. The US President Donald Trump imposed 10% tariffs on about $200 billion worth of Chinese imports and warned to pursue tariffs on $267 billion of additional imports if China takes retaliatory action. As of writing this article, the pair is trading at 1.1688 up 0.04% on the day.
Today’s key focus would be on the ECB President Mario Draghi’s scheduled speech, where any relevant comments related to monetary policy should influence the common currency and provide some meaningful trading opportunities. Apart from this, the economic docket lacks any major market moving releases and hence, the USD price dynamics might continue to act as a key driver of the pair’s momentum through Tuesday’s trading session. Although odds of a big risk-on move are quite low, as the prospects of a breakthrough deal between the US and China are quite low.
The recovery is likely associated with conciliatory comments from China's commerce minister. More importantly, the risk assets seem to have taken heart from the fact that the Trump administration imposed a 10 percent tariff on Chinese imports worth $200 billion as opposed to expectations of 25 percent levy.
This is evident from the recovery in the JPY crosses. For instance, the EUR/JPY pair witnessed a 70 pip recovery from session lows in Asia and could extend gains further if the global stock markets pick up a strong bid, although odds of a big risk-on move are quite low, as the prospects of a breakthrough deal between the US and China are quite low.
The EUR/USD may also find acceptance above 1.17 if the European Central Bank (ECB) President Draghi downplays the trade tensions and reiterates that the QE program will likely end in December.
Thanks
YoCryptoManic
Day Trading Range: 1.1665 - 1.1790
Key Resistance: 1.1720 - 1.1745 - 1.1768 - 1.1788
Key Support: 1.1688 - 1.1665 - 1.1635 - 1.1612
Technical Indicator:
RSI: Indicators shows upside bias in a day.
MACD: MacD having bullish trend.
Moving Avg: SMA55 (1.1626) & SMA200 (1.1568) are strong support for EURUSD.
Technical Idea:
Pivot: 1.1665
Most Likely Scenario: long positions above 1.1665 with targets at 1.1728 & 1.1755 in extension.
Alternative scenario: below 1.1665 look for further downside with 1.1635 & 1.1614 as targets.
Fundamental:
A bigger rally above 1.17 could be on the cards if ECB's Draghi plays down risks arising out of trade wars and the stock markets pick up a strong bid.
On the economic data front, the final Euro-zone CPI confirmed the flash readout of 2.0% y/y in August and remained supportive of the positive tone surrounding the shared currency. The US President Donald Trump imposed 10% tariffs on about $200 billion worth of Chinese imports and warned to pursue tariffs on $267 billion of additional imports if China takes retaliatory action. As of writing this article, the pair is trading at 1.1688 up 0.04% on the day.
Today’s key focus would be on the ECB President Mario Draghi’s scheduled speech, where any relevant comments related to monetary policy should influence the common currency and provide some meaningful trading opportunities. Apart from this, the economic docket lacks any major market moving releases and hence, the USD price dynamics might continue to act as a key driver of the pair’s momentum through Tuesday’s trading session. Although odds of a big risk-on move are quite low, as the prospects of a breakthrough deal between the US and China are quite low.
The recovery is likely associated with conciliatory comments from China's commerce minister. More importantly, the risk assets seem to have taken heart from the fact that the Trump administration imposed a 10 percent tariff on Chinese imports worth $200 billion as opposed to expectations of 25 percent levy.
This is evident from the recovery in the JPY crosses. For instance, the EUR/JPY pair witnessed a 70 pip recovery from session lows in Asia and could extend gains further if the global stock markets pick up a strong bid, although odds of a big risk-on move are quite low, as the prospects of a breakthrough deal between the US and China are quite low.
The EUR/USD may also find acceptance above 1.17 if the European Central Bank (ECB) President Draghi downplays the trade tensions and reiterates that the QE program will likely end in December.
Thanks
YoCryptoManic
Trade active:
Bull Flag Completed in M30 Chart, For more up confirmation
Trade active:
US Session Technical View:
Most Likely Scenario: short positions below 1.1700 with targets at 1.1652 & 1.1638 in extension.
Alternative scenario: above 1.1700 look for further upside with 1.1724 & 1.1755 as targets.
Most Likely Scenario: short positions below 1.1700 with targets at 1.1652 & 1.1638 in extension.
Alternative scenario: above 1.1700 look for further upside with 1.1724 & 1.1755 as targets.