EUR/USD pair trending points
- The Euro at last had entered in to a bullish territory yesterday, the 9thof January, 2019, despite gloomier market atmosphere and a stack of scourging financial data.
- After yesterday’s climb, which posted 0.89 percent gain, its best intra-gain since September 20th, 2018 (0.80 percent), the 1.1600 level appears to be on sight.
- From technical perspective, the American dollar would weaken eventually in 2019, as Fed had announced that they might pause or halt their rate hike cycle.
- Onwards the FOMC minutes, the American dollar lost its Tuesday’s (Jan. 8th) gain of 0.22 percent, as Japanese yen swung below in to 107 territory again against the American Dollar.
Euro technical outlook remains positive, as it keeps gaining against GBP and USD
Amid a weaker US dollar outlook and a Brexit Chaos over the UK parliament, the Euro bull run bolsters today against GBP and there is room for further Euro gain against USD(EUR/USD) above 1.1600 territory.
Eur fundamental outlook remains bullish against almost of the major currencies including AUD, CAD and NZD, although, Euro has been found foundering against those pairs today, Jan. 10th.
On Wednesday, Jan 9th, Euro posted 0.46 percent, 0.39 percent and 0.02 percent gain against AUD, CAD and NZD despite upbeat Asian market over the news of three-day-long extended trade talk between US and China.
EUR/GBP daily price chart
Against GBP, Euro has been gaining for four straight days in a row and currently residing at 0.9053, its best since the 28thAugust, 2018, while the key resistance level resides at 0.9099 over a 200-day moving average, and if broken, the Euro could retest its two-yearly high at 0.9258 (August 25th, 2017).
EUR/USD daily price chart
EUR/USD fundamental analysis
In terms of fundamental outlook, EUR appears to be bullish at this standpoint, as US interest rate setting, Federal Open Market Committee meeting on December 19th, had decided that the implied interest rates could be on hold up to March or higher amid intense market outcry.
In the latest talk, the Fed officials mentioned about two rate hikes in 2019, one in July and another in December, 2019. Alongside, the FOMC minutes revealed that the US central bank could afford to be patient regarding further policy tightening.
Apart from that, the US-China trade talk had concluded with hopes of earlier-than-anticipated resolution and a trade resolution would weaken the demand of American dollar, since a downfall below its critical support level at 93.85 seems to be appearing.
US dollar daily price chart
However, while this report is being prepared, the 10thof January, 2019, Thursday, the Euro has been surfing smoothly over 1.1530 and the American dollar was 0.70 percent down, at yesterday’s market closure.
The Erudite Euro appears to be hovering well, overhauling the worries of poor financial data and a break above 1.1622 (October 22ndhigh) seems to be on sight.
On the flipside, Euro is well-supported at 1.4448 region over a three-month moving average, however, a Euro downtrend is unlikely to resurface again.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]