I like a short 1.1620 with a stop loss at 1.1675 and a profit target of 1.1500.
EUR/USD 240 min Chart - EUR/USD is Weak
Trade Tensions Are High
Last week finished strongly for the USD after the US posted a decent employment report. While the headline number missed the mark, we saw that the previous months got revised higher. That meant there was some USD strength late, which hurt the EUR/USD.
This week the data is thin out of the Eurozone. The main focus will again fall to the ongoing trade wars between the US and China. Last week, China retaliated against the US and announced a further set of tariffs on $60 Billion worth of US imports. They were going to be taxed at a rate of 5-25%.
This comes in response to the US raising its rate up to 25%. The tit-for-tat saga shows no signs of slowing down just yet and the US President appears happy to keep on going forward.
The Chinese stock market has been falling and they have started devaluing the currency to try and compensate.
The USD so far has been strong despite the ongoing battle. And it is clearly the biggest factor for the EUR/USD this week.
Key Economic Data
The week ahead looks a little quiet on the economic data front, however on Friday we will get US CPI. The US economy has been turning things around nicely and if estimates are met, inflation will be inline with what the FED would be happy with.
The EUR/USD is currently ranging between. 1.1750 to the upside and 1.1500 to the downside.
If we are to take out 1.1500 then there might be plenty more selling to come as the downtrend is already gathering pace.
EUR/USD - Key Levels
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