- EUR/USD posted mild gains in Asia, despite the weaker-than-expected China trade data release.
- The heightened fears of a global growth slowdown, however, could cap gains in the euro.
The EUR/USD pair could come under pressure in Europe, as the global growth fears triggered by the below-forecast China trade numbers are likely to reverberate through the European and the US financial markets.
China, the world's second-largest economy, reported a trade surplus for December. That, however, was the product of a big slide in imports and a meager rise in exports.
Put simply, the domestic demand in China is unlikely to compensate for the decline the downward pressure on the economy created by the trade war with the US. As a result, the growth rate could drop sharply in the near future.
Further, the dismal rise in Chinese exports could be considered a sign that the global economy isn't doing any well either.
The stocks, therefore, could feel the pull of gravity, boosting the haven demand for the treasuries (US dollar). As of writing, the S&P 500 futures are down 0.70 percent.
Hence, the EUR/USD may drop into the red in Europe. As of writing, the pair is trading at 1.1473, having picked up a bid at 1.1458 in Asia.
EUR/USD Technical Levels
Today Last Price: 1.1476
Today Daily change: 13 pips
Today Daily change %: 0.113%
Today Daily Open: 1.1463
Previous Daily SMA20: 1.1423
Previous Daily SMA50: 1.1384
Previous Daily SMA100: 1.1476
Previous Daily SMA200: 1.1627
Previous Daily High: 1.1541
Previous Daily Low: 1.1458
Previous Weekly High: 1.1571
Previous Weekly Low: 1.1396
Previous Monthly High: 1.1486
Previous Monthly Low: 1.1269
Previous Daily Fibonacci 38.2%: 1.1489
Previous Daily Fibonacci 61.8%: 1.1509
Previous Daily Pivot Point S1: 1.1434
Previous Daily Pivot Point S2: 1.1404
Previous Daily Pivot Point S3: 1.1351
Previous Daily Pivot Point R1: 1.1516
Previous Daily Pivot Point R2: 1.157
Previous Daily Pivot Point R3: 1.1599
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