EURUSD threatens more downside

Orlando Gutierrez Learn 2 Trade

The EURUSD has hit a key level at the 1.1070 and has now rejected a bearish structure which technically confirms further downside. We are still very much inside an inmediate bullish structure which can be considered a flag. The US Dollar Index opened on Sunday with a gap up and is currently trading at 0.2% for the session.

After Friday's melt down the $DXY held the 98.10-98.00 level perfectly and is now rallying towards 98.80

The US-China trade talks are still in play with the chinesse delegation feeling that the phase 1 of the trade deal is not well balanced so they need the December tariffs hike removed since China is buying US Farm goods. This is a minor step back in what is looking to be a closed dealshould the US meet China half way. This would help our bullish view on the USD.

Should the EURUSD break with the 1.10 level a retest of the 1.0850 would be in play and more USD strength could threaten even more downside for the EURUSD towards 1.0750

Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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