EUR/USD is looking to break an intraday resistance level
|- EUR/USD is pushing to break the 1.1093 resistance level.
- The pair is trading 0.20% higher this morning.
EUR/USD is trading higher this morning after China and the US agreed to a phased rollback of extra trade war tariffs.
After the softening of the trade war tone, risk assets in general have seen a rise.
Elsewhere, the ECB economic bulletin forecasts improved as the ECB that incoming data and survey results point to moderate but positive growth in the second half of 2019. They also added Employment growth remains positive but moderate.
That has not been all from the ECB this morning as hawkish member Holzman said negative rates send the "wrong signal" and should end. Mr Holzman then added that monetary policy seems to have reached an end. Fiscal policy has to take over. Fiscal stimulus must focus on potential growth.
These comments came as the German Finance Minister said just yesterday that Germany are able to act if there is a crisis but there isn't one. So there may be no help there anytime soon.
Looking at the 30-minute chart, the bulls are now looking to test the 1.1093 resistance level which was used twice recently as resistance.
If you notice the RSI indicator below there was also a divergence where price made a lower low and the indicator made a higher low.
This can sometimes suggest that downside momentum was wearing thin. If this inspires a push higher then a test of 1.11 or higher could be on the cards.
On the daily chart, the price has made a lower high lower low formation which normally indicates bearishness. This could mean that this move higher is only a retracement.
With this in mind, I would keep a close eye on how the price reacts to resistance levels.
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