What is the next move in EUR/USD?

Russell Sandiford Reiwa-Capital.com

The Euro sentiment has shifted in the aftermath of the ECB meeting & meeting minutes last weekbut remains capped under 1.1080 against the USD.

The 4-hourly EUR/USD chart highlights the sticky price action around the 1.1030 key level, but a risk-on move to 1.1060 was seen on Friday.

The question is, where to next for EUR/USD?

What is in store for EUR/USD?

No doubt that the inverse correlation that exists between EUR/USD & USD/JPY remains consistent, so with my expectation of a move from 108.30 to 108.80 in USD/JPY, lower lows are likely to be seen in EUR/USD.

Another drift under 1.10 will need a USD uptick to be supporting the greenback, but realistically that will only come from a China-side positive confirmation of the partial trade deal announced on Friday.

US President Trump’s affirmations after the trade talks were abundantly optimistic, so I expect the USD to be supported this week once US traders are back online on Tuesday.

Watch for 1.0970/1.0980 in EUR/USD early this week as the bidders come back into the US Dollar.

Author

Russell Sandiford

Reiwa-Capital.com

Russell Sandiford is one of the most reputable market analysts in Australia with over 16 years’ experience in the global FX, indices and commodities markets.

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