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The pair EUR/USD continues its rally this Friday, intensifying an upward movement initiated yesterday after a low of 1.0988, the lowest since October 10.
And, just like the acceleration to the downside yesterday was due to concerns about the trade war, the rebound seen since last night is linked to a more reassuring on the same folder.
The optimism about an agreement on China-USA penalizes the Dollar
In fact, while the day yesterday was dominated by rumours of multiple points of blockade in the negotiations between the two countries, declarations of Larry Kudlow, economic adviser of the White House, boosted the investor optimism since yesterday evening.
He asserted that the United States “is closer to a trade agreement with China, “stressing that” the mood of the music is good “, and that ” the discussions with China have been very constructive “.
In addition to this positive news, which have reduced the attractiveness of the Dollar as a safe haven, the news out of the US of the day had not been particularly favourable to a resumption of the greenback.
Statistics US disappointing also promote the rise of the Euro-Dollar
Retail sales for the month of October in fact proved to be a mixed bag, growing more than expected for retail sales general (+0.3% against +0.2% expected), but less than expected excluding automobiles and gasoline (+0.1% versus +0.3% anticipated).
The manufacturing index for the Fed of New York was shown to him even more disappointing, at 2.9 points, compared to 6 in advance.
The industrial production has not played in favour of the Dollar, with a decline of -0.8% against -0.4% earlier.
Finally, to complete the list of arguments that explain the rise of the EUR/USD this Friday, it should be noted that the decrease in near-continuous posted since Monday justified profit-taking end of the week.
A number of positive signals to address a technical point of view
From a graphical point of view, The profile of the pair EUR/USD is improving clearly since yesterday, with multiple technical signals positive key to meet.
As of yesterday, the EUR/USD sent a first bullish signal by crossing above the moving average 100 hours. The Euro has confirmed its rising today, passing above the moving average 200 hours, and approximates the resistance of 1.1050-55. Beyond the next objective to the upside potential will be the psychological threshold of 1.11.
Has the decline, the moving average 200 hours and 100 hours, 1.1038, and 1.1017 currently will be the first media to monitor, before 1.10, and then the lows from yesterday at 1.0988.
