The US-EU trade talks and Yuan recovery is hurting the US dollar. The large bearish divergence of the 14-day relative strength index (RSI) also favors the USD bears. The US dollar exchange rate, as represented by the dollar index (DXY), fell to a two-week low of 94.09 in Asia as the US-European Union (EU) pledge to cut tariff barriers put a bid under risk assets. Wall Street Journal (WSJ) reported yesterday that President Trump has secured concessions from the European Union to avoid a trade war. Meanwhile, a source told Dow Jones that EU’s Juncker had offered to import more US soybeans and liquefied natural gas as well as reduce duties on some US goods. Consequently, global trade tensions eased, helping risk currencies post gains against the USD. Further, the CNY recovery is also allowing China proxies, commodities push higher against the greenback. As far as technicals are concerned, the USD looks set to further drop. For instance, the large bearish divergence of the daily RSI favors a downside break of the rising channel. If confirmed, the channel breakdown could yield a sell-off to 93.19 (June 14 low). Daily chart Spot Rate: 94.17 Daily High: 94.18 Daily Low: 94.09 Resistance R1: 94.37 (50-day moving average) R2: 94.86 (July 24 high) R3: 95.65 (July 19 high) Support S1: 94.09 (rising channel support) S2: 93.71 (July 9 low) S3: 93.19 (June 14 low) FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Sources: US open to steel duty waiver for India if it lowers export volume FX Street 5 years The US-EU trade talks and Yuan recovery is hurting the US dollar. The large bearish divergence of the 14-day relative strength index (RSI) also favors the USD bears. The US dollar exchange rate, as represented by the dollar index (DXY), fell to a two-week low of 94.09 in Asia as the US-European Union (EU) pledge to cut tariff barriers put a bid under risk assets. Wall Street Journal (WSJ) reported yesterday that President Trump has secured concessions from the European Union to avoid a trade war. Meanwhile, a source told Dow Jones that EU's Juncker had offered to import more… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
