EURUSD is under selling pressure for the second day in a row at 1.1003 after US CPI, month over month, came in at 0.4% above expectations of 0.3% in October, the yearly reading came in at 1.8% above forecasts of 1.7% in October. United States MBA Mortgage Applications jumped to 9.6% in November 8 from previous -0.1%. President Trump yesterday said, that China-US trade deal might happen soon and the phase one agreement is close, but he also said that if a deal isn’t reached the US will raise tariffs.
Traders await later today US Fed Chairman Jerome Powell, who is scheduled to testify on the economic outlook in front of the Joint Economic Committee.
EURUSD made fresh monthly lows today below the 1.10 mark but as of witing managed to rebound above the 1.10. On the technical side the momentum is bearish now as the pair trades below the 50 and 100-day moving averages. The rebound from two-year lows at 1.0878 stalled at 1.1172 amid support that risky assets found on better news from US-China trade tensions and Brexit. The correction has driven the price back to 1.10 zone.
Now on the downside, immediate support stands at 1.0998 daily lows, a break below that level might attract more bears to join the action that may push the price down to 1.0972 the low from October 10th.
On the upside, immediate resistance stands at 1.1019 today’s high, a break above can lead prices up to 1.1039 the 50-day moving average before an attempt to 1.1102 the 100-day moving average.More content