EUR/USD: The Euro is hesitating in spite of the extension of the truce in China-US


© Reuters. EUR/USD remains subdued despite the extension of the truce in China-US

Investing.com – As is already the case for several days, the pair EUR/USD continues to hesitate on Monday morning, moving without trend in the short term while continuing to register in a trend graph background remains bullish.

A channel haussierclairement visible for more than a week on the hourly chart also confirms the positive bias of the bottom.

In the recent news, we note the announcement made by the US president Donal Trump a deferral of the application of higher tariffs against chinese products.

It should be remembered that an increase of 10% to 25% on $ 200 billion of chinese goods, was to enter into force as soon as the first of march, but that the positive developments in the discussions between the two countries have led the US president to postpone the application of the new tariffs scheduled, from the perspective of a quick agreement.

This is an important step in the resolution of the trade dispute between China and the USA for several months, and these ads have largely benefited the chinese exchanges, and also support the european exchanges this morning.

On the forex, however, the impact remains very limited, the Dollar has displayed no particular reaction.

Today, the economic calendar will be empty, which argues for a continuation of the uncertainty.

It will, in fact, wait for tomorrow, 16h for the first events important of the week, with consumer confidence US according to the Conference Board, and with a speech of Powell, boss of the Fed.

But it is mainly the GDP Q4 2018 preliminary in the United States which is awaited by investors this week, Thursday at 14: 30. Economists anticipate a slowdown of growth to 2.6% against 3.4% in Q3 2018, and the figures below expectations could reignite speculation about a recession of the United States, and weigh on the Dollar.

From a graphical point of view, to new heights above those of the last week (1.1370) seems necessary to confirm the upward trend of background. In this case, the next step will be a test of the psychological threshold of 1.14.

Has the decline, the moving average 200 hours and the low of last Friday to form a first major support at 1.1315 before the psychological threshold of 1.13, which break would open the way to a bearish reversal bottom.

In this case, the next support to watch will be at 1.1275, 1.1250 and 1.1233, the low annual 2019.

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