- EUR hit two-week lows and closed below 50-day MA on Friday, opening the doors to 1.13.
- 1.13, however, may remain elusive if the equities cheer a slightly upbeat China data, sending the EUR higher.
The EUR/USD pair fell to 1.1353 on Friday, a level last seen on Jan. 4, and closed convincingly below the 50-day moving average (MA) for the first time Jan. 3.
A close below the key MA is backed by the bearish crossover between the 5- and 10-day MAs. Further, the 14-day relative strength index (RSI) has slipped into bearish territory below 30.00.
So, it could be argued that the path of least resistance is to the downside. The crucial support at 1.1306 (Jan. 3 low), however, may not come into play today, as the markets may buy euros on evidence that the economic slowdown in China is not as bad as expected by many.
Indeed, China's annualized growth rate slowed to 6.4 percent in the fourth quarter of 2018; the lowest level since early 2009. That, however, was expected and price-in. Further, industrial production expanded 5.7 percent in December, beating the estimated figure of 5.3 percent by a big margin.
That could keep the equities and the EUR better bid. Hence, the psychological resistance of 1.14 could be put to test, although further gains may remain elusive, courtesy of Sino-US trade tensions. The US Treasury has reportedly informed lawmakers about the lack of progress in the intellectual property (IP) dispute, which has been a major sticking point in the Sino-US trade negotiations.
The EUR could also take cues from Brexit news and the EUR/GBP flows.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1376
Today Daily change: 0.0011 pips
Today Daily change %: 0.10%
Today Daily Open: 1.1365
Trends:
Daily SMA20: 1.143
Daily SMA50: 1.1386
Daily SMA100: 1.1463
Daily SMA200: 1.1604
Levels:
Previous Daily High: 1.1412
Previous Daily Low: 1.1353
Previous Weekly High: 1.1491
Previous Weekly Low: 1.1353
Previous Monthly High: 1.1486
Previous Monthly Low: 1.1269
Daily Fibonacci 38.2%: 1.1375
Daily Fibonacci 61.8%: 1.1389
Daily Pivot Point S1: 1.1341
Daily Pivot Point S2: 1.1318
Daily Pivot Point S3: 1.1283
Daily Pivot Point R1: 1.14
Daily Pivot Point R2: 1.1435
Daily Pivot Point R3: 1.1458
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