EUR/USD: mixed response to the newsflow on US/China trade relations [Video]
|EUR/USD
As last week progressed, the outlook on EUR/USD was developing into a more positive positioning within what is still a medium term range (between $1.0980/$1.1180). A mixed response to the newsflow on US/China trade relations left us with a shooting star candlestick on Friday. The fact that this candle included a failed test of the $1.1180 resistance will be of concern for the bulls (leaving a high at $1.1200). It means that the response early this week as the dust settles will be key. Initially, it seems that the bulls are positioning to continue supporting the market. There is a developing run of buying into weakness, with five consecutive higher daily lows (threatening a sixth today). Coming above $1.1100 (the top of the old mid-range pivot band) suggests that pressure is building towards another test of $1.1180/$1.1200. Momentum is positive and the hourly chart shows good upside potential now for the test higher. Closing back under $1.1100/$1.1110 would at least neutralise the market again.
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