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#1 13-01-2020 08:47:37

johnedward
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From: Paris - France
Registered: 21-12-2009
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EUR/USD: will the decline continue this week?

EUR/USD: will the decline continue this week? What catalysts and thresholds do we need to monitor?


The EUR/USD pair fell sharply last week, between a high of 1.1204 at the start of the week and a low of 1.1086 at the end of the week.

For the record, last week was marked by a rebound of the USD, which accelerated mid-week with the release of a much better than expected ADP report.

However, last week's NFP report, which was similar but more influential on trading, was worse than expected, which hindered the USD's rally at the end of the week, allowing the pair to finish the week above 1.11, but without a significant rebound.

Caution is still required as the pair finished the week below the 200-day moving average currently at 1.1137, which is a negative signal.

This moving average should be considered as immediate resistance today, ahead of 1.1150 and 1.12.

Should the pair fall back, the psychological threshold of 1.11 will be monitored as a potential first support level, ahead of the 100-day moving average around 1.1059, and then the critical psychological threshold of 1.10.

Finally, as for potentially influential news today, it should be noted that the economic calendar will be completely empty, both in Europe and in the United States.

We will therefore be watching above all appetite for risk, which will depend very much on the Iranian situation, while tension remains high between the two countries, as well as on China-US relations, as Liu He is due to sign the initial trade agreement between the two countries at the White House mid-week.

As for the economic calendar, the most important statistics in the coming days will be the US CPI tomorrow, and US Retail Sales on Thursday.

Currently, the EUR/USD pair is trading at 1.1126 on the forex.

Daily EUR/USD chart

http://www.forex-central.net/forum/userimages/EURUSD-D1.png



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