EUR/USD Mid-Session Technical Analysis for August 30, 2019
The Euro is trading lower against the U.S. Dollar on Friday, as investors continue to price in aggressive easing by the European Central Bank and ignored doubts by some policymakers about the need for additional stimulus. Although the Fed is expected to cut its benchmark rate by 25-basis points in September, this form of stimulus is considered tame when compared to what the ECB may be planning.
At 11:17 GMT, the EUR/USD is trading 1.1038, down 0.0019 or -0.18%.
According to reports, the ECB is expected to reduce its already negative benchmark rate and announce a new round of quantitative easing at September’s meeting.
Christine Lagarde, the ECB’s next president, said the central bank has room to cut rates if necessary. However, Board member Sabine Lautenschlaeger opposes an aggressive move as well as Dutch central bank chief Klaas Knot.
The U.S. Dollar is also being boosted from the announcement of renewed trade talks between the United States and China.
Daily Technical Analysis
The main trend is down. The downtrend resumed earlier on Friday when sellers took out the previous main bottom at 1.1052. A trade through 1.1164 will change the main trend to up.
Daily Technical Forecast
Based on the current price at 1.1038 and the downside momentum, it looks like sellers are poised to take out the August 1 bottom at 1.1027. This will put the EUR/USD in an even weaker position with the next major downside target the May 11, 2017 main bottom at 1.0838.
On the upside, the nearest resistance angle drops in at 1.1070. The Gann angle at 1.1084 is also resistance.
This article was originally posted on FX Empire
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