After having already Lost ground on Friday, EUR/USD resumed its decline as soon as the Forex reopened on Sunday evening, and is currently trading at a low. 1.0930, in a market risk aversion tarnishes amid concerns about About China.
The risk of a real estate crisis in China penalizes EUR/USD
Indeed, the difficulties of the market are Chinese real estate markets intensified over the weekend, as Country Garden, the largest private property developer, of China, said to the Shenzen Stock Exchange that it was going to suspend trading of its 11 onshore bonds at from Monday.
The reaction of the Chinese stock exchanges, and more broadly of the Asian markets, was not long in coming, the actions of the real estate developers accentuating their plunge of the last week. Elsewhere, the Shanghai Composite is down around 1.3%, while the Hong Kong Hang Seng is down more than 2%.
This risk aversion climate favors the dollar, a safe haven, which penalizes EUR/USD all the more as the troubles in China have a more direct impact on the European economy than on the US economy.
Many important events for EUR/USD expected tomorrow, white day on Monday
Regarding the next potentially influential events on the Euro Dollar, it will be noted that the economic calendar for this Monday will be empty. The program will come to life. starting tomorrow with Chinese industrial production, the German ZEW index, US retail sales, and the New York Fed index, a particularly busy schedule, which will be followed by the publication of the Minutes the next day.
Forex traders will also keep an eye on the impact of this week’s US statistics on expectations for the next Fed meeting, knowing that the barometer is Rates US Investing.com currently shows that investors are factoring in a probability 90% that the FOMC decides not to raise rates on September 20.
Technical thresholds at watch on EUR/USD
From a graphical point of view, we will first notice that the EUR/USD is currently at the contact of its 100-day moving average (1.0929), which lasted 100 days. recently stopped several corrections.
A break below this threshold, which would be validated A break below last week's low (1.0912) and ideally below 1.09 would be an important bearish signal, which would put the next support in sight at 1.0830.
On the upside , 1.10 the first key obstacle, before the zone of 1.11, then 1.12, and finally the record of this year at 1.1277.
EUR/USD puts pressure on key support ahead of several major tests