I want to get short at 1.1700 with a stop loss at 1.1750 and a profit target of 1.1550.
EUR/USD 240 min Chart - EUR/USD is Weak
New Tariffs in Focus
The EUR/USD fell away to close out the week as the USD was finding plenty of buying. A weaker than anticipated retail sales figure, got pushed to the side as again it was trade that dominated the headlines.
That ramped up over the weekend as well, as the headlines making the rounds, were suggesting that US President Donald Trump was set to launch the next round of tariffs on China. The new tariffs will be on $200 billion worth of Chinese goods, however, the rate will be dropped from 25% to 10%.
The move comes as the President looks to appease importers who are forced to pass on the tariffs to consumers. There is also the midterm elections that are coming up in November and Mr Trump has to make sure he is keeping the Republican party happy.
Let’s not forget that a tariff is effectively a tax and those costs will be felt by the consumers, who are also the voters.
Key Economic Data
The major data this week from the Eurozone is mainly the CPI release on Monday. Other than that we will be unlikely to get much in the way of market moving information.
The US has a few releases on housing and Philly Fed data, but they are unlikely to be big movers. It’s a quiet week on the data front.
The EUR/USD has been ranging between the 1.1550 support level and 1.1700 resistance. There is clearly a lot of selling pressure above 1.1700. So the plan this week will be to look to short any pops up to or above that level.
EUR/USD - Key Levels
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