- EUR/USD reaches 11-day high amid trade deal concerns.
- EUR/USD approaches 100-day SMA, key resistance level.
EUR/USD advanced for the third day in a row on Monday and struck an 11-day high as the dollar came under further pressure amid reports that Chinese officials are pessimistic about a trade deal with the United States. According to media reports, China doubts a ‘phase one’ deal could be signed given US President Trump's reluctance to roll back some tariffs, which China thought the US had agreed to.
Trade deal concerns translated into lower US yields, falling stocks, a weaker greenback, and higher demand for safe-havens in financial markets.
On the data front, October’s US housing starts will be released on Tuesday, while investors should be closely following the release of the Federal Reserve's latest meeting minutes on Wednesday and the European Central Bank minutes on Thursday. ECB President Christine Lagarde is due to speak in Frankfurt later in the week. However, investors’ sentiment would likely remain driven by US-China trade negotiations headlines.
EUR/USD Short-Term Technical Outlook
On the flip side, key short-term support is seen at the 1.1030 area as a breakdown could lead to renewed weakness toward 1.1000, en-route to 2019 lows.
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