I want to get long at 1.1200 with a stop loss at 1.1200 and a profit target of 1.1600.
EUR/USD 240 min Chart - EUR/USD has Bounced
Trade News in Focus
The EUR/USD might just be the beneficiary of a risk-on feel to start the week thanks to the G20 developments over the weekend.
The big news from the summit was clearly that the US and China are looking to move forward with a deal on trade. What that means in the short-term is that the proposed tariff increase to 25% from 10% on Chinese goods, will be put on hold for 90 days as the two countries work to broker a deal.
At the same time, China will look to ease restrictions on a number of US products, which are primarily agricultural.
The deal will focus on China easing their own trade restrictions and clamping down on the raft of IP theft that regularly takes place.
The news has seen stock markets rally along with commodities and commodity currencies. While the USD is looking like it will sell-off as risk-on is the order of the day.
The EUR/USD will likely see some more upside on the news which will potentially open the door to some a long signal.
Key Economic Data
While the focus is certainly on the trade developments over the weekend, we have to remember that this coming Friday we have US employment data. Markets are expecting 200,000 new jobs to have been created last month, which comes on the back of 250,000 the prior month.
We also have US Federal Reserve Chairman Jerome Powell testifying at Congress, which will be an eagerly watched event. Recently he has signaled that US interest rates are now reaching a neutral level, which suggests the proposed hikes in 2019, might not happen and that will clearly weigh on the USD.
The EUR/USD bounced off the 1.1300 a couple of times now and we also have longer-term support at 1.1200.
The round number levels are really important at the moment and if we can break and hold above 1.1400, then we have the potential to move back to 1.1600.
EUR/USD - Key Levels
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