Good morning traders.
We didn´t make any headway up the chart yesterday as risk off came back into focus. Whether this will continue depends largely on whether China comes out with any positive statement to back up those made by Trump after the G20. However, President Trump didn´t exactly help his cause yesterday by tweeting “… I´m a Tariffs man…” . Bit of foot in mouth right there!
At the moment there seems to be a great deal of suspicion as to what was actually achieved with regard to the so called trade war truce. The market needs some real evidence rather than placatory rhetoric (and mixed messages). If none is forthcoming we could be looking at further losses in the equity markets and risk off becoming entrenched.
Additionally we had the Brexit issue forcing 3 losses on the UK Government in parliamentary debates yesterday and Italy seems to be no nearer resolution.
There doesn´t look to be much that will propel the eurusd upwards and remember we have market closures in the US today in honour of former President H.W.Bush.
The Daily Chart
Nothing looks particularly bullish to me so I will be watching out for any further selling. The first key resistance is 1.13. If we get a close below this level, 1.12 and the 61.8% Fib will be back in focus.
The Hourly Chart
The S & R levels are noted although they are less clear to me than they have been over the past couple of days.
In these circumstances I will let the price action evolve, keep an eye on the lower time frame charts when we are approaching our H1 levels and keep an open mind!
Buckle up 🙂