EUR/USD Being Steady, Trade Wars Are in Focus

The trade conflicts between the US and China are still in focus for the investors. The EUR/USD has stabilized and is currently trading slightly higher.
Dmitriy Gurkovskiy
Euro Trade Wars

By Tuesday, the EUR/USD has stabilized after the volatile previous week. The market is now looking for support. The major pair is still near the 4-month highs, with the last week high at 1.1802.

The US economic reports came mixed. Housing starts got up by 9.2% MoM, reaching 1.282M homes, which beat expectations by far; still, the next news release wiped off any positive effects, as the building permits in August decreased by 5.7% MoM, being just 1.229M. This result was the weakest in more than 12 months.

Last Thursday, the euro was rising heavily reaching the 4-month highs after the dollar index started falling, despite the treasury yields growing and good jobless claims data coming out.

The trade conflicts between the US and China are still in focus for the investors. The Chinese government response was not that hard as the market players expected, which made their risk appetite go up again. Today Sep 24, both the US and China are bringing in their additional customs duties, which creates some tensions in the market. Meanwhile, people are discussing that Beijing may decline the scheduled talks on trade relations with the US. If this is the case, this will be a heavy strike against the Republicans and Trump in particular. For now, however, an unexplainable euphoria is reigning in the markets. China refusing to talk nevertheless means that the trade war is becoming hotter and there’s no way back.

On H1, the EURUSD is continuing to form a midterm correctional uptrend. The movement is steady, with some reasons for speeding up, too. The nearest target is the major channel resistance, which is the latest high at the same time, located at 1.1816. After breaking it out, the price may attack the short term uptrend resistance at 1.1850. The local support is at 1.1730, while the major one is at 1.1700. Local support breakout is also possible, and once 1.1730 gets broken out, the price may further go down to reach not only the major support at 1.1700 but also the projection support at 1.1650.

EUR/USD 1H Chart

This article was written by Dmitriy Gurkovskiy, a Chief Analyst at RoboForex

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US