EURUSD is trading 0.17% lower at 1.1117 as President Trump said that negotiations between US and China will restart very soon. The Germany IFO – Business Climate came in at 94.3 below expectations of 95.1 in August, the IFO – Expectations came in at 91.3 also below expectations of 91.5 in August.
EURUSD corrects from the daily highs at 1.1163 but keeps the positive momentum that has build since last Friday. Bears are still in control as the pair trades below all the major daily moving averages, but in the hourly chart the bulls are controlling the momentum as the pair trades above the 50 and 100 hour moving averages. On the upside immediate resistance stands at 1.1163 today’s high and then at 1.1206 the 50 day moving average, a break above can lead prices up to 1.1282 the 200 day moving average. The pair will meet support at 1.1110 the daily low and then at 1.11 the 50-hour moving average, before an attempt to 1.1026 yearly low.
Intraday traders might enter a long position if the pair manages to break above the 1.1162 top targeting a break above 1.12. A stop loss at 1.1110 must also be placed for reducing the downside risk as that will signal possibly a move down to 1.11 area.
A short position targeting the YTD low may be initiated if the pair crosses below 1.11, with a stop loss order at 1.1111. All in all, bears are in control and if EURUSD breaks below 1.11 the downward move might accelerate down to 1.1026 yearly low and then at 1.0950.