Dollar Is Consolidating. Investors Assess Situation in China-US Trade Talks

Over the past two weeks, the US dollar has lost positions relative to its main competitors. The dollar index (#DX) is currently testing monthly lows. Investors assess the FOMC meeting minutes. The Fed believes that if there are no significant changes in the economy, further reduction in the key interest rate will not be required. It should be recalled that in the current year, the regulator lowered its key interest rate three times. At the moment, the indicator is at the level of 1.50% -1.75%.

dx-2019-11-21
Source: finviz.com

The trade conflict between the US and China is still in the focus of attention. Financial market participants are concerned that the conclusion of a phase one trade agreement between Washington and Beijing may be postponed to next year amid growing disagreements. The US Congress passed a bill aimed at supporting protesters in Hong Kong. In turn, Beijing criticized these legislative measures, promising to retaliate.

Let’s consider the current technical pattern on the EUR/USD currency pair

  • Support Levels: 1.10550, 1.10300, 1.10150
  • Resistance Levels: 1.10900, 1.11150, 1.11400
  • market-news-2019-11-21

    The EUR/USD currency pair is being traded in a flat. A unidirectional trend is not observed. The key support and resistance levels are 1.10550 and 1.10900, respectively. Indicators signal the power of buyers:

    • - The price has fixed above 50 MA and 100 MA;
    • - The MACD histogram has moved into the positive zone and continues to rise.

    The EUR/USD quotes have the potential for further recovery. We recommend opening positions from key levels.

    If the price fixes above the resistance level of 1.10900, we expect further growth of the single currency. The immediate goal for profit taking is the 1.11150 mark. The movement is tending to 1.11400-1.11750.

    An alternative could be a decrease in the EUR/USD currency pair to 1.10400-1.10150.

    Confirmations and market entry points should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.

    by JustForex, 2019.11.22

    This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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