EUR/USD on a Daily TF shows us renewed , on Monday the pair opened with a gap up and tested 1.11 vicinity as resistance as well as 1.10 area as support, and by the end of day chose the upper hand. The pair is using 38.2% Fibo as support, as well as the top of the , currently trading around 1.10750.
Risk aversion returned to the markets as the phase one of the trade deal between the two largest economies downcurved with renewed uncertainties. President Trump mentioned the possibility of holding off the trade deal til after the November 2020 elections. With December 15th tariff increase deadline looming ahead, confusing headlines on trade and fresh tariff reinstatement - risk off makes sense.
Later today we have the release of anticipated ADP Non-farm payrolls at 1:15pm GMT . This is a great gage to pre-determine the official report on employment scheduled for release on Friday at 1:30pm GMT . The forecast is 15K growth, weaker data is likely to have a greater impact on the pair than a better reading. Later at 3pm GMT ISM will report on US Services PMI.
We would like to remind you that news headlines regarding trade negotiations remain one of key driving factors for EUR/USD .
histogram is increasing, pointing up. The price is using top of as support. We may see further momentum before resuming in the direction of the global trend down.
Resistance: R1 1.11 area, R2 23.6% Fibo 1.11086, R3 1.11285 near . 200EMA is at November highs around 1.11673.
Support: S1 50% Fibo 1.10293, S2 1.10 – 1.09939 61.8% Fibo, S3 1.09812