EUR/USD hits fresh weekly highs above 1.1160
|- US-China phase one deal to be signed anytime now.
- Greenback loses momentum across the board during the American session.
The EUR/USD pair climbed to 1.1162, hitting a fresh weekly high. It then pulled back, but it managed to remain above 1.1140. As of writing trades at 1.1155/58, near the top with a bullish tone.
The move higher took place amid a broad decline of the US dollar. However, the slide of the greenback was modest. Traders await new details about the US and China trade deal, with the signing ceremony of the “phase one” agreement starting in a few minutes.
The DXY is trading at weekly lows, near 97.20, and US yields moved off lows but remain in negative territory for the day. US data came in mixed on Wednesday. The PPI rose below expectations in December while the Empire manufacturing index surpassed analysts' estimates.
Technical outlook
The EUR/USD pair holds a bullish tone and the momentum is likely to remain high as long as it stays above 1.1145. The next strong resistance might be seen at 1.1175/80 followed by 1.1200. On the flip side, below 1.1145 the euro will likely lose strength. The upside bias is likely to hold while EUR/USD remains above 1.1085/95 (uptrend line from October lows).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.