Euro Bears attempted to break support at the opening of Mondays session but the move was premature. Dollar weakness prevailed after the possibility of a deal between the United States and China slightly dimmed following a comment from the Chinese delegation.
Vice Premier Liu He, will lead the Chinese delegation in high level talks with the US starting on Thursday October 10th and he stated that he is coming to bring forth a deal that will not include commitments on industrial policy or government subsidy reforms, which were some of the key factors set forth buy the United States. The new pressure from China comes after increased impeachment tensions for President Donald Trump, failing US Manufacturing activity and a decline in job creation.
As a result, Euro Bulls pushed the price above 1.10 but failed to push above resistance and came back down to the area of 1.09900.
We have a strong trend line down that coincides with the 200EMA. Short positions look to be more favorable at this time. Conservative traders can wait for a bounce from the trend line down or a break and full close below the local trend line up.
Targets down are going to be around 1.09639 support, then 1.09397, followed by 1.09224 and lastly 1.09051.
Vice Premier Liu He, will lead the Chinese delegation in high level talks with the US starting on Thursday October 10th and he stated that he is coming to bring forth a deal that will not include commitments on industrial policy or government subsidy reforms, which were some of the key factors set forth buy the United States. The new pressure from China comes after increased impeachment tensions for President Donald Trump, failing US Manufacturing activity and a decline in job creation.
As a result, Euro Bulls pushed the price above 1.10 but failed to push above resistance and came back down to the area of 1.09900.
We have a strong trend line down that coincides with the 200EMA. Short positions look to be more favorable at this time. Conservative traders can wait for a bounce from the trend line down or a break and full close below the local trend line up.
Targets down are going to be around 1.09639 support, then 1.09397, followed by 1.09224 and lastly 1.09051.