Monday, January 21, 2019

EUR/USD - 21 Jan 2019


Fundamental Highlights

The Euro remains to trade around the 1.1380 level as investors await the occurrence of a significant catalyst to guide them through their next directional bet. For today, no significant economic data is coming out of either the Euro zone or the US which means that the focus will be on any developments in regards to the US/China trade dispute and Brexit. Note that a positive development regarding the trade dispute between the US and China will strengthen the Single currency since easing trade tensions will allow the European economy to flourish.

Technical Analysis

The Euro is currently testing the 13-period moving average following the rejection of the break below the 1.1352 support. Although the pair rejected to break below the 1.1352 support, momentum remains bearish as prices trade below all three major moving averages. For now, traders need to monitor the pair's behavior around the 13-period moving average. The rejection of the break above the 13-period moving average will re-confirm the strong bearish momentum surfacing the currency.

Support: 1.1352 / 1.1310
Resistance: 1.1410 / 1.1449

Chart (H4)
eurusd jan21