The price of eur/usd is moving now! It stopped below the dynamic resistance identified by the EMA20 daily. So it did not complete the movement that we expected this week. The analysts had expected a slight decline in the US dollar against the other majors because of the FED conference, the announcement of the pay slips of the non-agricultural sector and the level of unemployment.
The price is going to look for the static resistance set around 1.13 on this pair. For after the announcement of Trump on the new duties that will be imposed on China, the USD has strengthened again. We close at Break Even the bullish position that we had opened on EURUSD.
Technical point of view
The main trend remained unchanged. The final target is reachable within a few months among the static supports set at 1.10-1.08. There wasn’t the rebound we expected, is now very likely that it will continue in this downtrend.From here (1.12) the price should start to go down and re-test the non-key static support at 1.112 within a few sessions. Once tested and broken to the downside there will be confirmation of a channeling on the part of this change projected to the downside. Here the price will bounce between the upper and lower side until it reaches the minimum of the period which will presumably be the area around 1.08.
Fundamental point of view
Even the fundamental scenario supports this view. The European Central Bank will continue to adopt an expansive policy, devaluing the Euro. The FED does not intend to take steps back by cutting rates and reviewing its monetary policy.
The price of eur/usd is moving now and the possible TPs that we will set for this pair are:
-the first one on the support of the 1.112.
-the second on that of the 1,104.
-the third on the final target at 1.08 and coinciding with 78.6% of the Fibonacci retracement.
The analysis will be invalidated at the break of the resistance zone in the 1.146 area.