EUR/USD Spot Price: 1.1365
Support - 1.1350, 1.1330, 1.1300
Resistance - 1.1400, 1.1420, 1.1450
Trade-Ideas - The EUR/USD is Holding Key Resistance
I want to get short at 1.1400 with a stop loss at 1.1450 and a profit target of 1.1300.
EUR/USD 240 min Chart - EUR/USD is Weak
The EUR/USD overall is holding below some key resistance levels as pressure continues to mount on the shared currency.
The week got off to a positive start for risk-on assets as there have been early reports that the US and China are closing in on a deal on trade. That has the potential to see the USD fall away as it does act as a safe-haven currency.
At the same time, the EUR is struggling as data keeps pointing to a lacklustre economy. CPI is still well below the target band of 2-3%, currently coming in around 1.5% YoY. That means Mario Draghi will have some concerns this week as he tries to steer the Eurozone back into better times.
I suspect the state of the economy will continue to warrant more stimulus discussion and that might be the thing to watch at Mario Draghi’s Press Conference after the release of the decision.
Outside of the ECB, the main data point will be US non-farm payroll data. This will have a huge bearing on the USD which in turn will push the EUR/USD.
Analysts are expecting 180K new jobs to have been created last month, down on the massive 304K figure that we saw in the prior period.
The EUR/USD has been holding strongly below the 1.1400 key resistance levels.
Price has spiked a number of times though that level and each time it has retraced. I expect it to keep holding for the time being, outside any major development from the ECB, or an incredibly bad result in Friday’s US employment report.
EUR/USD - Key Levels
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