• The EUR/USD is trading slightly lower in the wake of the new week.
  • Trade concerns support the greenback ahead of Draghi's speech.
  • The technical picture remains bullish for the pair.

The EUR/USD is leaning lower at the wake of the new week, trading closer to 1.1700 than to 1.1800. The new US tariffs on China are implemented today and tensions mount, boosting the US Dollar and the Japanese Yen. 

Axios reported that the Trump Administration plans a broadside on China, blaming it not only for trade but also for cyber-security issues, economic espionage, intellectual property theft, and more. Chinese officials canceled their trip to Washington for trade talks. 

The gridlock in Brexit talks has hit the Pound hard and also slightly weighed on the Euro. UK PM May convenes her cabinet later in the day to discuss the EU's rejection of her Chequers plan and what to do next.

The German IFO Business Climate is due later but the main event of the day is the testimony by Mario Draghi in the European Parliament. The President of the European Central Bank will lay out his views on the current economic situation, inflation developments, and perhaps touch on trade wars.

The ECB tapers down its bond buys next week. Draghi's colleagues at the ECB have also spoken out lately. Ewald Nowotny wants to accelerate the path to finishing monetary stimulus while Peter Praet and others wish to soothe investors by clarifying that rate hikes will be very gradual.

The primary event of the week is the rate decision by the Federal Reserve. The Fed is projected to raise rates now and signal a move in December. The bigger question is about future steps.

See: Fed Preview: Tight or not so tight? Dollar Domination awaits

EUR/USD Technical Analysis

EUR USD Technical analysis September 24 2018

The EUR/USD is trading alongside an uptrend support line that accompanies it for over a week. The recent drop puts the trendline into play. The pair is trading above the 50 and 200 Simple Moving Averages on the four-hour chart, a bullish sign. The Relative Strength Index is quite balanced.

The 1.1725-1.1735 area capped the pair in September and in August and is a battle line. 1.1650 was a low point last week and provides further support. 1.1605 held the pair up earlier in the month.

The fresh high of 1.1800 that was seen on Friday is also a round number and serves as resistance. A further cap is the mid-June high of 1.1850 and the veteran January high of 1.1915 is next up.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended Content

Recommended Content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 


GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 


Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!