October 09, 2019 | AtoZ Markets – EURUSD pair is trading above 1.0950 after falling due to growing trade tensions between the US and China. The U.S. decision to limit visas for Chinese officials weighs on sentiment ahead of Thursday’s talks.
Looking at the EURUSD charts, the pair finds a recent support at 1.0940 levels. Next, we find 1.0905, which held EURUSD up twice in the past two weeks. The 2019 low of 1.0879 is the next line to watch. Moreover, resistance awaits at 1.0960 levels, which has separated ranges several times in recent weeks.
For EURUSD technical analysis,
EURUSD Fundamental Outlook – Major focus on US Sino trade war
The US authorities have announced visa limitations to Chinese officials. This involved in human rights violations in China’s Xinjiang province. The event follows the blacklisting of 28 firms from the world’s second-largest economy and relation to the mass detentions.
The new Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva said: “The world economy is now in a synchronized slowdown”
Also, Jerome Powell, Chair of the Federal Reserve, reiterated his position that the US economy is doing well in a speech on Tuesday. Powell also added that while the Fed’s balance sheet is expanding, markets should not see it as another round of Quantitative Easing. Fed Chairperson will speak again today, and markets will also scrutinize the Fed’s meeting minutes from the September meeting.
EURUSD might rebound from the current level on US weakness if the minutes open doors for the cut. If they repeat the activity that the bank is data-dependent then the pressure on EURUSD may persist.
Think we missed something? Let us know in the comments section below.