EUR/USD Current Price: 1.1149

  • Tensions mount ahead of the US-China signing ceremony and details on the trade agreement.
  • The US Producer Price Index came in below expected, maintaining the greenback under pressure.
  • EUR/USD neutral-to-bullish in the short-term could run above 1.1180.

The EUR/USD pair has advanced to a fresh weekly high of 1.1154 as the dollar fell out of the market’s favor. Speculative interest had a hard time digesting Tuesday’s trade war headlines, disappointed by the fact that the current tariffs will remain in place at least until the US general election next November.

The negative sentiment cooled down a bit after US Treasury Secretary Mnuchin said that China has agreed to put together very significant laws to follow through on its commitments and there will be additional tariff rollbacks in phase two of the trade deal.  Pressure on the American currency eased, with EUR/USD stabilizing near daily highs.

Germany released Real GDP Growth, which matched the market’s forecast by printing at 0.6%. EU data, however, missed the market’s expectations as the November Trade Balance came in at €20.7B, while Industrial Production in the same month fell by 1.5%, worse than the 1.1% decline expected.

The US just released the NY Empire State Manufacturing Index for January, which resulted at 4.8, beating the market’s forecast of 3.5, and the December Producer Price Index, which rose monthly basis by 0.1% and by 1.1% when compared to a year earlier, both below expected. The US and China signing ceremony will come after Wall Street’s opening, and details on phase one agreement could shake the board.

EUR/USD short-term technical outlook

The EUR/USD pair is trading a few pips above the 38.2% retracement of its latest daily slide, offering a neutral-to-positive stance, as, in the 4-hour chart, the pair is developing above all of its moving averages, which anyway remain directionless. Technical indicators have bounced just modestly from their midlines, falling short of supporting further gains ahead. The pair would need to rally past 1.1180, the 61.8% retracement of the mentioned decline, to confirm an upward extension during the upcoming hours.

Support levels: 1.1120 1.1090 1.1065  

Resistance levels: 1.1180 1.1220 1.1260

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD holds higher ground above 0.7300

AUD/USD extends gains above 0.7300 amid fresh US dollar selling across the board, as the market sentiment remains mixed starting out a fresh week.  PBOC's status-quo, upbeat Australian PM Morrison's comments and the rally in copper prices bode well for the aussie. 


USD/JPY extends losses below 104.50 amid risk-aversion

USD/JPY resumes its decline towards 104.00 amid risk-off action in the Asian equities and broad dollar weakness. Markets in Tokyo are off for Respect-for-the-Aged Day, Focus shifts to the Fed Chair Powell's speech. 


Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

The week ahead: Central bankers’ chance to explain themselves

Global equities took another hit at the end of last week, and as we start a fresh week there is some concern that volatility could be creeping back into the markets and that tech has lost some of its lustre, along with gold, which also ended the week lower. 

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex Majors