EUR/USD Price Forecast – EUR/USD Opens Positive Following Positive Headlines Surrounding Sino-U.S. Trade Talks Over Weekend

EUR/USD is trading near new mid-line at 1.1340 in Monday’s early trading session after revived risk appetite from the weekend’s successful G20 Leaders’ Summit yielded the groundwork for a broad-market recovery after US President Donald Trump and China’s Xi Jinping agreed to postpone further tariff hikes for an extra 90 days as the two sides return to the negotiating table. As of writing this article, EUR/USD pair is trading at 1.1349 up by 0.28% on the day. While Italian government has shown willingness to negotiate budget plans, the debate for negotiation still remains as a difficult hurdle for euro bulls.

Investors Await US ISM Manufacturing PMI For Short Term Opportunities

Italy’s Prime Minister Conte met with the European Commission’s Jean-Claude Juncker over the weekend and statements about Italy and the EU working to find a deal were given but the details remain light. Moving forward, investors will likely remain skeptical about Italy’s deficit-spending government budget and their growth projections for their own domestic economy until solid data that supports positive progress emerges. On the release front, Eurozone PMIs for November are slated for today, with Germany PMI dropping at 08:55, quickly followed by the Euro-area broad PMI expected shortly after at 09:00 GMT.

While both are expected to remain steady with their previous readings (51.6 and 51.5 respectively), the action for today could come from the US’ ISM Manufacturing PMI at 15:00 GMT, expected to tuck up from 57.7 to 57.8. When looking from technical perspective, the pair is facing some strong resistance around 1.1350-60 and the 100 SMA above which there is strong hurdle near 1.1375 to 1.1410 zone which needs to be breached in order to paint in positive outlook for Euro in short to medium term. On the flip side a move below 1.1300 will see the pair face some support around 1.1265 mark below which the pair could see sharp retracement all the way to 1.1200 handle.