EUR/USD Forecast: Risk-off could push it below 1.1000
EUR/USD Current Price: 1.1021
- Trade war headlines creating uncertainty, speculative interest inclined to buy the greenback.
- No relevant macroeconomic data scheduled for this Monday, sentiment to keep leading.
- EUR/USD set to extend its decline after piercing critical Fibonacci support at 1.0992.
The EUR/USD pair has extended its decline on Friday, closing the week at 1.1020, its lowest settlement in almost a month. The shared currency was unable to take advantage of its American rival, in spite of the seesawing market’s sentiment following US-China trade war headlines. Speculative interest was hoping that both countries would roll back levies in phases once a deal is reached, although ahead of the close, headlines indicated that US President Trump hadn’t made a decision on the matter yet. His advisor, Peter Navarro, later confirmed the President’s words, remarked that tariffs are an “insure policy” to make sure that China is negotiating in good faith.
On Saturday, Trump said that trade talks were moving nicely, adding that there’s no great deal, there won’t be a deal at all. Uncertainty over the issue will likely affect high-yielding assets at the weekly opening. The macroeconomic calendar for these economies will remain empty this Monday.
EUR/USD short-term technical outlook
The EUR/USD is bearish and at a brink of losing a critical support, as it settled below the 50% retracement of its October monthly rally, with the 61.8% retracement of the same run providing support at 1.0992. In the daily chart, the pair is below all of its moving averages, while technical indicators maintain their bearish slopes, supporting a downward extension. In the shorter term, and according to the 4-hour chart, the risk is also skewed to the downside, as the pair is also developing below all of its moving averages, with the 20 SMA having crossed below the 100 SMA and about to pierce the 200 SMA, as technical indicators consolidate at their lows.
Support levels: 1.0990 1.0950 1.0920
Resistance levels: 1.1030 1.1065 1.1100
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
