The Euro rises back up towards 1.1370 after Friday’s slump. The beginning of the week rise in the Single currency is attributed to the easing trade tensions between the US and China. During the G20 summit, President Trump and President Xi both agreed on a truce to stop initiating tariffs on each other for the time being until a final agreement on trade is reached. Trump agreed to hold off raising tariffs from 10% to 25% on $200 billion worth of Chinese goods, while President Xi promised to make substantial amounts of purchases from the US to reduce the trade imbalance between the two nations. Such agreement between the two powerhouse nations of the world signals optimism and improves sentiment within investors. The improved sentiment drives investors towards risky bets/assets and this is why we are seeing the Euro rise today.
The Euro rises above the 13 and 50-period moving average indicating strength from bull traders. The shift in the momentum of the pair will be confirmed if prices break above the 200-period moving average. the break above the 200-period moving average and the 1.1426 resistance will confirm the shift in the directional bias of the pair and pave the way for a rise towards the next key resistance level at 1.1494.
Support: 1.1315 / 1.1260
Resistance: 1.14326 / 1.1494