Tuesday, January 29, 2019

EUR/USD - 29 January 2019

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Fundamental Highlights

The Euro pushes slightly higher as demand for high beta currencies continues to increase due to improved market sentiment. The Euro started to push higher after US President Trump reopened the US government, the head of China's government Li claimed that the the Chinese economy “has enough resilience, potential and ample room for growth”, and positivity surrounding the outcome of Brexit surfaced the market. For today, investors will need to focus on the release of the US Consumer Confidence figures as it will affect the pair from the US Dollar's side.

Technical Analysis

The Euro is currently trading inches below the 1.1448 resistance. The break above the 1.1448 resistance will pave the way for a rise towards the next resistance level at 1.1500. Currently, the pair's bias is bullish given that prices are trading above all the three major moving averages. To strengthen the case for bullish momentum, the 13-period moving average has recently broken above the 200-period moving average. On the other hand, if sentiment flips to the downside and the pair manages to break back below the three major moving averages, then the 1.1342 support level will be exposed.

Support: 1.1398 / 1.1342
Resistance: 1.1448 / 1.1500

Chart (H4)
EURUSD