EUR/USD Current Price: 1.1116

  • US Treasury Secretary Mnuchin to provide details on phase one of the trade deal.
  • Markit will release the preliminary estimates of its PMI for both economies this Monday.
  • EUR/USD at risk of losing further ground on a break below 1.1065.

After flirting with 1.120 and reaching a 1-month high, the EUR/USD pair trimmed half of its weekly gains on Friday, ending the day in the red at 1.1116. The dollar tumbled on uncertainty, amid contradictory headlines related to the trade deal between the US and China, later soaring on the back of news indicating that phase one of a trade deal between both economies was reached. Over the weekend, China announced it suspended additional tariffs on the US meant to be implemented this Monday, while the US is expected to do the same, after agreeing to long purchases of US goods, mostly agricultural.

US Treasury Secretary Mnuchin said that details about the deal will soon be released, adding that the new trade relationship with China would be “very good” for global growth, adding that phase two of negotiations will begin immediately. Speaking of which, Markit will release the preliminary estimates of December PMI this Monday for most major economies. For sure, the effects of the trade deal in the world’s economies will take some time to be shown, and investors will likely kick-start the week with optimism, less concerned about numbers have to say, at least for now.

EUR/USD short-term technical outlook

The EUR/USD pair retreated from a multi-week high of 1.1199, a few pips below the 61.8% retracement of its latest daily slump, ending the week below the 50% retracement of the same decline. The daily chart shows that the pair was unable to sustain gains beyond a mild-bearish 200 DMA but holds above the 20 and 100 DMA, both converging around 1.1060. Technical indicators have lost their strength upward but hold within positive levels. In the shorter-term, and according to the 4-hour chart, the downward potential is also limited, as the pair settled a few pips below a still bullish 20 SMA, while technical indicators retreated from overbought readings to settle in neutral levels. The pair would turn bearish only with a break below the mentioned 1.1060 price zone.

 Support levels: 1.1100 1.1065 1.1030  

Resistance levels: 1.1145 1.1180 1.1210

View Live Chart for the EUR/USD 

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD surges toward 1.3150 amid upbeat UK data, USD weakness

GBP/USD has been extending its gains after the British CBI Trends figure beat expectations. Markets are pricing a BOE rate cut less aggressively. The US dollar is on the back foot across the board amid reduced coronavirus fears.


EUR/USD struggles to recover amid Trump's tariff threats

EUR/USD is trading below 1.11, close to the three-week lows, as President Trump continues threatening the EU with car tariffs. Markets remain concerned about the spreading coronavirus disease. 


BoC goes dovish, USD/CAD jumps above 1.31

In a widely expected decision, the Bank of Canada on Wednesday announced that it left its policy rate unchanged at 1.75% at its January policy meeting. In its policy statement, the BoC noted that it sees less risk of an extreme downside scenario related to trade tensions.

Read more

Gold Price Analysis: Intraday uptick falters near 50-hour SMA, remains vulnerable

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European session on Wednesday.

Gold News

USD/JPY rises above 110.00, potential head-and-shoulders on 1H

Risk reset in stocks is boding well for USD/JPY.  The pair may be forming a head-and-shoulders pattern on the hourly chart. The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart.


Forex Majors