© O Financista. The profile of the EUR/USD pair remains bullish
The trend continues to be positive this Tuesday morning the pair EUR/USD, which continues to benefit from a movement of weakness of the dollar that it can also be seen on the Dollar Index and the USD/JPY pair.
The greenback is crumbling under the weight of multiple uncertainties, with a context of risk this week, mainly on two points : The negotiations on China-USA, and the Fed meeting on Wednesday.
The negotiations on China-USA and the expectations are dovish for the Fed weigh on the Dollar
In regards to the trade war China-USA, it should be noted that a chinese delegation is on a visit to Washington this week, in a tense context due to accusations the US against the chinese company Huawei, in relation to bank fraud and theft of trade secrets.
The results of the companies in US, more and more affected by the slowdown in Chinese demand, as we saw yesterday with Nvidia and Caterpillar, also makes the trade war is a major topic for the stock markets, and the financial markets in general.
In regard to the meeting of the Fed, the multiple signs of a global economic slowdown that have been identified since the last meeting the Fed prompted the market to anticipate a dovish position on the part of the central bank of US, which also weighs on the outlook for the US Dollar.
News and publications to watch for today
Today, the consumer confidence US for the month of January according to the Conference Board, expected in the fall, should once again confirm that the economic situation is deteriorating.
The Brexit will also be honored this afternoon, with a vote by the british Parliament in regard to several amendments, which should help to define more clearly the possible options to break the impasse on this issue.
Two key barriers that may limit any further increase
From a graphical point of view, the profile of the EUR/USD pair remains bullish, the pair has managed to equal the highs of yesterday’s this morning. The next hurdle lies at 1.1450, before two other obstacles much more important : The moving average 100 days 1.1472, and the threshold of major psychological 1.15.
Downward 1.1425 will be the first support to be taken into account, prior to 1.14, and 1.1375-80, an area where are currently moving averages 100 and 200 hours.
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