EUR/USD remains in the red despite trade optimism and Trump's bearish comments on USD


  • EUR/USD offered near 50-day MA in Asia, having faced rejection near 61.8% Fib retracement hurdle last week. 
  • Trump said a strong dollar hurting US competitiveness. 
  • The US-China trade deal may embolden the Fed to hike rates. 

EUR/USD is currently trading at 1.1366, having clocked highs near the 50-day moving average (MA) of 1.1385 in Asia. 

Technically speaking, pair's repeated failure to beat the resistance at 1.1407 (61.8% Fib R of 1.1514/1.1234), as seen last week, could entice sellers. 

Wall Street Journal reported in early Asia that the US and China are closing on a trade deal. The risk assets responded positively to that news with China's Shanghai Composite index rising to the highest level since June 2018. 

So far, however, the EUR hasn't picked up a bid and could be offered in Europe despite potential risk-on in equities as any normalization of ties between the US and China will likely pave way for more Fed rate hikes. 

Also, President Donald Trump said that he wants a dollar that's great for the American economy and not a dollar that is so strong that it is prohibitive for us to deal with other nations.

Trump's bearish take on the USD, however, seems to have gone unnoticed, leaving EUR/USD at the mercy of the 10-year yield differential, which is currently seen at 258 basis points - the highest level since Feb. 18. 

The spread could continue to rise in the EUR-negative manner as easing trade tensions may reinvite Fed rate hikes, as noted earlier. 

Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.1366
    Today Daily change: 1 pip
    Today Daily change %: 0.01%
    Today Daily Open: 1.1365
Trends:
    Daily SMA20: 1.1344
    Daily SMA50: 1.1391
    Daily SMA100: 1.1387
    Daily SMA200: 1.1508
Levels:
    Previous Daily High: 1.1409
    Previous Daily Low: 1.1353
    Previous Weekly High: 1.1422
    Previous Weekly Low: 1.1328
    Previous Monthly High: 1.1489
    Previous Monthly Low: 1.1234
    Daily Fibonacci 38.2%: 1.1375
    Daily Fibonacci 61.8%: 1.1388
    Daily Pivot Point S1: 1.1342
    Daily Pivot Point S2: 1.132
    Daily Pivot Point S3: 1.1287
    Daily Pivot Point R1: 1.1398
    Daily Pivot Point R2: 1.1431
    Daily Pivot Point R3: 1.1453

 

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