Wednesday, January 9, 2019

EUR/USD - 09 Jan 2019


Fundamental Highlights

The Euro recovers after a slight correction and rises back towards 1.1470. The rejection of the break towards lower ground signifies bullish momentum, which is attributed to positive investor sentiment surrounding the outcome of the US/China trade talks. An improvement in the trade relationship between US and China boosts risk appetite among investors and drives demand towards high beta currencies such as the Euro. Alongside any news announcement related to the US/China trade talks, today's Euro price action will depend on the result of the Eurozone's Unemployment Rate figure and the release of the US's Fed Meeting Minutes.

Technical Analysis

The Euro bounces off the 13-period moving average as prices continue to trend higher and form higher lows. The rejection to break below the 13-period moving average is a clear indication of bullish momentum. Furthermore, prices are also trading above both the 50 and 200-period moving averages. The next leg higher will be confirmed if prices manage to break above the 1.1500 resistance which will pave the way for a rise towards 1.1550.

Support: 1.1430 / 1.1349
Resistance: 1.1500 / 1.1550

Chart (H4)