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#1 14-01-2020 09:17:35

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 2753
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EUR/USD: the pair remains blocked under a critical resistance level

EUR/USD: the pair remains blocked under a critical resistance level - what technical or fundamental factors do we need to watch out for?


The EUR/USD pair tried to make some headway on Monday, but seems to be stuck due to a key technical factor.

As a reminder, in the absence of any major events in the economic calendar, traders continued to digest the poor US NFP employment report released last week, which kept the USD under pressure, to the benefit of the EUR/USD pair.

However, the pair has been unable to climb back above the 200-day moving average currently at 1.1138, even though this indicator has been playing a key pivotal threshold role for several weeks now.

A breach above this moving average is indeed necessary for the pair to be able to consider an upward continuation towards the next targets at 1.1150, 1.12, 1.1240 (end-of-year high) and the psychological threshold of 1.13. The pair has been unable to break above the 200-day moving average currently at 1.1138, despite the fact that this indicator has been playing a key pivotal role for several weeks.

If the pair starts to fall again, immediate support will be at the psychological threshold of 1.11, ahead of the 100-day moving average at 1.1066, followed by the key psychological threshold of 1.10.

Aside from that, the market is also expected to remain in anticipation of the signing of Phase 1 of the US/Chinese trade agreement, although the details of the deal are still unclear.

Finally, it should be noted that the GBP/USD pair could have an impact on the EUR/USD by correlation.

The pound fell below $1.30 on Mondday, and remains below that level as of Tuesday morning, as market speculation of a possible BoE rate cut is increasing following the release of several disappointing UK statistics on Monday.

Daily EUR/USD chart

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



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"Anything worth having is worth going for - all the way." - J.R. Ewing

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