Thursday, September 26, 2019

EUR/USD

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Fundamental Highlights

The Euro sold-off towards the yearly lows after President Trump said a trade deal with China might come sooner than expected and a much better US New Home Sales, which boosted the optimism around the greenback. Today, ECB's Draghi will deliver a speech at the European Systemic Risk Board annual conference in Frankfurt. The central bank eased on Sept. 19 by 10 basis points to -0.50% and announced an infinite QE program, which will begin from Nov. 1. The common currency will likely drop to the critical support 1.0926 and possibly further, if Draghi negatively characterizes the Eurozone inflation and economic conditions and reiterates the need for bond purchases. In addition, traders will be watching the release of US GDP data today; a slight uptick will probably guarantee a new yearly low on the pair.

Technical Analysis

The Single currency could not hold gains above 1.10, as the bears took over once again and pushed price towards the yearly low and the critical support level 1.0930s. Today’s fundamental catalyst could finally push the Euro below 1.0926, to levels last seen back in 2017. It is make or break for the bulls, they need to protect these levels with everything they have to stay relevant in the battle of possession.

Support: 1.0926 / 1.09
Resistance: 1.0966 / 1.10

Chart (H4)
EURUSD