|Day's Range||1.166 - 1.172|
|52 Week Range||1.1302 - 1.2558|
The U.S. dollar on Tuesday traded in a tight range, struggling for direction in the wake of an intensification of the U.S.-China trade fight after the Trump administration followed through on its plan to impose tariffs on an additional $200 billion in Chinese goods, prompting Beijing to vow retaliation.
European stocks were looking at a lackluster session for Tuesday, as trade tensions between the U.S. and China made it hard for markets to get a foothold on gains.
Based on the early price action, the direction of the EUR/USD is being controlled by the uptrending Gann angle at 1.1646. If this creates enough upside momentum then we could see a move into 1.1723. Taking out this level should lead to a test of a pair of tops at 1.1734 and 1.1751.
Break of 100-day SMA couldn’t help the EURUSD extend its latest advances as ten-week long descending trend-line, at 1.1720, presently challenges the buyers. As a result, a D1 close beyond 1.1720 become necessary for the pair to justify its strength in targeting the 1.1760-65 and the 1.1820 resistances. In case the 1.1820 fails to disappoint EUR optimists, the 1.1840, the 1.1880 and the 200-day SMA level of 1.1950 can entertain them. On the downside, 1.1650 and the 50-day SMA level of 1.1600 may offer immediate support to the pair prior to highlighting the 1.1530-20 horizontal-region. ...
The marker highly influenced by the US-China trade relations, and deterioration can lead to a steep correction. This pair is very sensitive to the global macro developments and given the current situations relating to the US-China trade relations and Brexit issues, it would be difficult for the market to navigate higher.
Global stocks trade mostly higher on Tuesday morning following Trump’s 10% tariffs on an additional 200B of Chinese imports.
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.
The Euro rallied rather significantly during the trading session on Monday to kick off the week, showing signs of strength and pressing the 1.17 level early during New York trading.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
Investing.com - The dollar fell against its rivals Monday, on fears of an escalation in the U.S.-China trade war, while a stronger pound and euro also weighed on sentiment.
The U.S. dollar weaken firmly on Monday, as financial markets worry about renewed escalation of the trade spat between the U.S. and China.
The market will be focused on the trade war between the US and China, as the US may announce new customs duties as early as this Monday, which may make China refuse the scheduled trading terms talks.
Investing.com - The U.S. dollar edged lower against its major rivals on Monday, amid renewed fears over an escalating trade war between the world's two largest economies.
Based on the early price action, the key area to watch is the Gann Angle/50% price cluster at 1.1626 to 1.1625. Early in the session, the EUR/USD tested this area. A sustained move over 1.1626 will indicate the presence of buyers. If this move gains enough traction then look for a minimum test of 50% of the break from 1.1723 to 1.1618. This intraday target is 1.1671.
Euro zone annual inflation slowed slightly to 2.0 percent in August, the EU's statistics agency said on Monday, confirming its earlier estimate. Eurostat also confirmed that inflation excluding volatile energy and unprocessed food prices, which the European Central Bank looks closely at in policy decisions, was 1.2 percent on the year. Month-on-month, headline inflation was 0.2 percent, Eurostat said, while the figure excluding energy and food was 0.1 percent.
The pair rolled over during the Friday’s session, perhaps due to the risk-off move and noise around the market relating to the global macro developments. The 1.15 level underneath continues to be a strong support region for the pair.
Economic data could take a back seat through the day, the markets more eager to see whether there is a green light for U.S – China trade talks.
Investing.com - With little data on the economic calendar, markets will likely focus more heavily on trade-related headlines in the coming week after reports said U.S. President Donald Trump wants to move forward with tariffs on $200 billion in Chinese goods.
The Euro rallied initially during the week and reached towards the top of the shooting star from two weeks ago. The shooting star of course is a negative sign, so if we can break above that I think the market could go higher. However, we have pulled back on Friday and showing signs of more consolidation ahead.
The Euro rolled over during the day on Friday, as the 1.17 level has offered significant resistance. By doing so, it looks as if we are going to wipe out some of the recent gains. However, I do think there is support below that you should be paying attention to.
Elsewhere, the dollar rose against the safe-haven yen, with USD/JPY increasing 0.13% to 112.07. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion. The Australian dollar was lower, with AUD/USD down 0.21% to 0.7180, while NZD/USD fell 0.09% to 0.6563.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at 1.1686.
The pair exploded higher during the Thursday’s session sending the pair above the 1.1650 level after it was reported that CPI numbers missed the estimate in America. There was also a statement from ECB chair, Mario Draghi that stimulus is still needed in EU which is a dovish statement but the market is focusing on CPI numbers which had led to strong selling in the USD. The British Pound rallied significantly breaking above the 1.31 level after the release of CPI data in the US.