Friday, November 8, 2019



Fundamental Highlights

The US treasury yields spiked to 1.97% - the highest level since August 1, sending the Euro lower on renewed U.S.-China trade optimism, triggered by reports that both countries will cancel some existing tariffs if phase one trade deal is reached. Moreover, the German Industrial Production data missed estimates, adding further pressure on the common currency. The pessimism, however, could be short-lived after reports stating that internal disagreements in the Trump Administration are stalling a sign-off on the deal. The Single currency may find a bid heading into the EU session, keeping in mind that the overall bias remains to the downside.

Technical Analysis

The European currency bears retested the 200-day moving average yesterday as expected, and they are looking to extend their gains below this critical level to confirm the bearish domination. A retest of the recently broken support 1.1075 is a likely scenario before possibly continuing to the downside. The bulls, on the other hand, will try to protect the 200-day moving average with everything they have, knowing it is their last chance to stay in the battle before being completely dominated.

Support: 1.1045 / 1.1025
Resistance: 1.1075 / 1.11

Chart (H4)