We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @zerohedge: Is The Market Up This Week? Just Ask The Fed's Balance Sheet https://t.co/6p01J9yAZ8
  • $USD: "The US Dollar is making a last-ditch effort to cling onto a key technical support level after dropping 3% from its 2019 high as risk appetite roars and the Fed inflates its balance sheet." - via @DailyFX Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/14/us-dollar-outlook-fx-volatility-rising-from-extreme-lows-usd-levels-to-watch.html https://t.co/87cITJPVQa
  • The $NZD is testing resistance guiding the currency lower against its US counterpart for over two years. Will buyers prevail or be rejected yet again? Get your market update from @IlyaSpivak here:https://t.co/hRsbxhwotM https://t.co/ehlbb43gqd
  • very cool, very legal https://t.co/gsOxPiEdIw
  • $USDCAD is testing slope support into the close of the week with the immediate short bias at risk while above 1.3134/51. Get your USD/CAD technical analysis from @MBForex here:https://t.co/eE9yrNEU80 https://t.co/mszY7ouYRF
  • $EURUSD Daily Pivot Points: S3: 1.0966 S2: 1.1041 S1: 1.1085 R1: 1.116 R2: 1.119 R3: 1.1264 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The British Pound’s relief rally may still have some room to run: volatility in the $GBP has dropped back to levels typically associated with periods of ‘positive developments’ in the #Brexit process. Get your market update from @CVecchioFX here:https://t.co/uzXRd8y4ck https://t.co/Nxf6opYgLd
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.31% 🇨🇦CAD: 0.12% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.09% 🇳🇿NZD: -0.11% 🇦🇺AUD: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/z0x9cPG1TN
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.40% Silver: 0.09% Oil - US Crude: -0.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fpuNos9jTO
  • RT @bbands: Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention.
EUR/USD Price Chart: Euro May Fall on PMI Data, Trade War

EUR/USD Price Chart: Euro May Fall on PMI Data, Trade War

2019-11-22 08:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

Euro, EUR/USD, Trade War – Talking Points

  • EUR/USD may undergo selling pressure if Eurozone PMIs incite ECB rate cut bets
  • Euro decline may be amplified from the resurrection of EU-US trade war hostilities
  • What were key takeaways from ECB minutes, are officials optimistic or distressed?

Learn how to use politicalrisk analysis in your trading strategy!

EUR/USD may continue its descent if Eurozone PMI data underwhelms and supports the case for future liquidity provisions from the European Central Bank (ECB). Resurrected US-EU trade war tensions will likely cast doubt over the ability of the manufacturing sector to recover from its wounds amid the US-Sino conflict. EUR/USD failure to break above key resistance opens door to key support at 1.1022.

Eurozone Economic Data May Catalyze EUR/USD Selloff

Preliminary Eurozone manufacturing PMI data for November is expected to show a 46.4 figure, slightly higher than the prior 45.9 print though still in contractionary territory; any reading above 50 indicates an expansion. Services is anticipated to a 52.4 reading while the composite is pegged at a 50.9 estimate, with the precious reports at 52.2 and 50.6, respectively.

The comparatively stronger growth in the services sector relative to the contraction in manufacturing helps keep the composite PMI index above the 50 mark. However, if industrial production continues to slide, it could eventually bleed into services and draw down the overall performance in the composite index. The spillover in industrial weakness has been a growing concern among central bank policymakers.

ECB Minutes: Main Takeaways

ECB Vice President Luis de Guindos said that a recession in the Eurozone was “very improbable”, though he did note that risks to the region’s economic prosperity remain tilted to the downside. The central bank’s meeting minutes also noted that no-deal Brexit concerns have waned, and this has helped buoy sentiment and restore cautious confidence in producers.

However, officials noted that they expect growth in the Eurozone to remain subdued for a prolonged period of time. The slowdown may be amplified by external factors like the US-China trade war as a result of the global chilling effect it has on world growth. However, now that the EU and US may not enter their own direct trade-related conflict, the prospect of upside inflationary pressure and economic activity is put at risk.

EUR/USD Technical Analysis

As forecasted, EUR/USD failed to break above key resistance at 1.1073 and is now trending lower, opening the door to test support at 1.1022. Traders may wait for another daily close in the red before adding to their short positions, though the more prudent ones might wait until the pair clears support at 1.1022 with follow-through. A break below there could mark the resumption of EUR/US’s dominant downtrend.

EUR/USD – Daily Chart

Chart showing EUR/USD

EUR/USD chart created using TradingView

EURO TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.