Market Overview

EUR/USD: Under Pressure

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EUR/USD: Under Pressure
  • The pair lost some upside momentum beyond 1.1200 the figure.
  • US-China trade jitters continue to drive the sentiment in the markets.
  • The greenback rebounds from lows on yields spread.

Spot is struggling to keep the march north intact in the first half of the week, although there seems to be lack of follow through on occasional breakouts of the critical 1.1200 the figure.

Widening yield spreads between the US 10-year note and its German peer are removing some tailwinds from the upside momentum around EUR/USD, lending support to the buck and adding to today’s lack of conviction in the price action.

Furthermore, German data has once again disappointed expectations earlier in the day and also appear to be weighing on spot. In addition, mood among traders appear mixed today over concerns on the US-China negotiation and rising skepticism following Trump’s comments.

screen_shot_2019-05-07_at_10.20.05-636928157512747373.png

On the technical perspective, EUR/USD is still expected to re-visit the area of 2019 lows in the boundaries of the 1.1100 handle while below the critical multi-month resistance line at 1.1317. Looking north, initial hurdle aligns in the 1.1270 zone, where converge last week’s tops and the 55-day SMA. Downside pressure is expected to mitigate somewhat when and if this hurdle is cleared.

Image sourced from Pixabay

Posted-In: EUR/USD euroNews Eurozone Forex Global Markets General

 

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