EURUSD downtrend is looking weak

The bearish cross in the pair may be short-lived: Chart

EU (1)

The US Dollar was bearish against most of its major pairs on Monday with the exception of the NZD and JPY. On the US economic data front, no major economic data was released.

On Tuesday, the U.S. Trade deficit for August is expected to increase to 66.2 billion dollars on month, from 63.6 billion dollars in July. Finally, U.S. Job Openings for August are expected to release at 6.50 million jobs on month, compared to 6.62 million jobs in July.                      

The Euro was bullish against all of its major pairs. In Europe, research firm Markit has published final readings of September Services PMI for the Eurozone at 48.0 (vs 47.6 expected), for Germany at 50.6 (vs 49.1 expected), for France at 47.5 (as expected) and for the U.K. at 56.1 (vs 55.1 expected). The Eurozone's August retail sales rose +4.4% on month (vs +2.5% expected).

The Australian dollar was mixed against all of its major pairs. 

WTI Crude Oil jumped 2.3$ (+6.21%) to 39.35.

The largest gainer on the day was the EUR/USD which climbed 63 pips to 1.1779 in Monday's trading. A bearish cross remains in-play after the 20-day moving average crossed below the 50-day moving average however bearish momentum has failed to materialize. A break above the 50-day moving average near 1.181 would be a strong bullish signal. A break below 1.1605 support could cause an acceleration lower towards 1.15 key support that was acting as resistance back in March. 

Source: GAIN Capital, TradingView

Happy Trading

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.