|Day's Range||1.166 - 1.172|
|52 Week Range||1.1302 - 1.2558|
European markets clung to positive territory on Wednesday, with gains for miners and banks helping to keep the main index from slipping too far in the red.
The U.S. dollar trades slightly weaker versus many of its rivals on Wednesday, as investors focus on turmoil surrounding the British pound, as well as China’s reiteration that it wouldn’t use its yuan as a trade war tool.
The Euro rallied initially during the Tuesday’s session but as soon as China announced retaliatory tariffs, the market turned extremely volatile. In order to continue with the bullish sentiment, it needs to break above the 1.1725 level, which will send this pair to the 1.1750 level and then to the 1.18 level. The pair is successfully holding above the 1.3125 level and given enough time, it likely that buyers send this market much higher.
The pair may have a hard time scaling the neckline resistance, courtesy of the widening two-year and 10-year US-DE (Germany) yield spread.
The Euro slammed into a downtrend line during the trading session on Tuesday as traders are beginning to digest the idea of even further trade tariffs between the American and China, which of course isn’t going to help much.
It’s been a bullish start to the day, in spite of rising trade war tension, the Aussie Dollar leading the way, focus now shifting to UK inflation.
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.
The major U.S. equity indexes are trading higher shortly after the cash market opening on Tuesday as the latest tariffs on U.S. and Chinese goods failed to lead to lead to knee-jerk selling as anticipated during the pre-market trade. U.S. Treasury yields were trading mixed when the news came out this morning. However, shortly after the stock market opening, yields are trading higher. The U.S. Dollar is trading lower against most major currencies except the Japanese Yen despite rising Treasury yields which tend to drive up demand for the greenback
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.