EURUSD Makes Small Rebound from 1.1900 Handle

The pair started the week with a slow range bound momentum, post slight sell off in US dollar on disappointing Non-Farm Payroll data. While the pair has broken past the two months resistance and moved onwards in bearish decline, US dollar continues to remain strong. So far US dollar has managed to weather strong sell off triggers during FOMC update and NFP data. The pair is currently seeing a firm bearish decline for last 15 consecutive trading sessions.

EURUSD Still in Doldrums

The pair saw slight rebound post reaching 1.900 handle after a disappointing Non-Farm Payroll update on Friday which was far below the estimated 192k at 164k. The wages came below forecast as well at 2.6% YoY. While both NFP and Wage saw steep decline, it was not disastrous enough to offset bull’s grip on US dollar. Currently the pair is trading at 1.1960 to 1970 price ranges but the well below two month support levels of 1.2090 to 1.2095 price ranges.

While fundamentals seem to support USD on its bull run, the strength of US dollar against major currencies is expected to take a hit as trading progresses further this week. This sentiment for possible decline in US dollar has been on rise since the weekend over news from the weekend which indicates that the US-China trade wars could see major attention this week. This increase in tension between US and China comes after US delegation in China has requested a $200 billion cut to US-China Trade deficit by end of 2020, which the Chinese Officers view and call as “Unfair”.

The macroeconomic calendar is light today in both US and European markets which doesn’t help either currency to form any sort of breakouts during today’s trading session. However some analysts are of opinion that the pair could see some corrective rally today based on comments made by ECB Executive board member Peter Praet during today’s speech and outcome from German Factory order MoM data. While Corrective rally could be in EUR’s favor, Investors focus on Fed & ECB monetary policy divergence will likely keep gains capped in short price range.

Expected support and resistance price range for the pair in near future trading sessions are at 1.1940/1.1910 & 1.2000/1.2030 respectively. However if corrective rally results in another bearish breakout below 1.1900 handle then the next stable support can only be found around 1.1708 price range.