EURUSD Resilient Despite News of Iran Attacking US Bases
The euro is showcasing resilience on the charts despite news that Iran has taken action against the US. As of this writing, EURUSD is still trading above its daily open price. It is currently up roughly 3 pips as it trades at 1.1154.
Earlier in today’s Asian trading session, Iran attacked two US bases in Iraq. It was said that there were roughly a dozen ballistic missiles launched and 9 of them hit Ayn al-Assad and Erbil.
Surprisingly, the most reaction that we got from EURUSD was when the currency pair retreated by 9 pips from its Asian session highs at 1.1167. The reason behind this may have been because there have no confirmed casualties from the attack yet. The US Pentagon said that an initial assessment shows that there were no US casualties. In fact, US President Trump even tweeted “All is well” after news of the attack hit headlines. Iraqi security first reported that there were casualties on their side but officials later on denied them.
EURUSD to Take Its Cue from Economic Reports?
Perhaps today’s roster of economic data from the US will have more impact on EURUSD. Yesterday, the currency pair traded lower following the positive US non-manufacturing PMI report which printed at 55.0 versus the 54.5 forecast. The ADP report for December is due later at 1:15 pm GMT. A job growth of 160,000 is expected. Better-than-expected data could drive down EURUSD while a disappointing figure could push it higher.
As of this writing, EURUSD is finding support at the 100 SMA. In fact, it still has some room to move lower to 1.1130 and still maintain its uptrend. Connecting the lows of November 29 and December 24, we can see that the rising trend line seems to fall in this price. The currency pair may also find support at the 61.8% Fib level when you draw from the swing low of December 24 to the high of December 31. However, a strong bearish close below this level that may be triggered by risk aversion could mean that EURUSD would soon be headed to its December 24 lows at 1.1067.
On the other hand, bullish candlesticks could mean that EURUSD is headed to its December 31 highs at 1.11236.