The optimism generated by reports of US-EZ auto deal and hawkish ECB expectations are capping the downside in the EUR. However, the US-China trade war could trigger risk aversion and push the common currency lower. The US-China trade war is close to becoming a reality, however, EUR/USD is showing no signs of stress. The pair continues to trade flat-lined around 1.1685, having hit a high of 1.1720 yesterday. The downside i is likely being capped by more hawkish European Central Bank (ECB) expectations and reports suggesting a possible US-Eurozone auto trade deal. Focus on US-China trade war The US tariffs on $34 billion worth of Chinese imports are set to take effect today. Further, President Trump has threatened to impose an additional $500 billion tariffs if Beijing imposes retaliatory tariffs in response to initial US tariffs. Clearly, the world’s two biggest economies are closing on a long drawn out trade war and the financial markets may turn risk-averse in European and US session. Hence, the calm in the EUR/USD could be short-lived. Further, the trade standoff could overshadow the monthly US non-far payrolls figure, scheduled for release at 12:30 GMT today. EUR/USD Technical Levels Resistance:1.17 (psychological hurdle). 1.1743 (descending 50-day moving average), 1.1852 (June 14 high). Support: 1.1648 (10-day moving average), 1.1591 (July 2 low), 1.1508 (June 21 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 China’s Commerce Ministry: Forced to retaliate against US tariffs FX Street 3 years The optimism generated by reports of US-EZ auto deal and hawkish ECB expectations are capping the downside in the EUR. However, the US-China trade war could trigger risk aversion and push the common currency lower. The US-China trade war is close to becoming a reality, however, EUR/USD is showing no signs of stress. The pair continues to trade flat-lined around 1.1685, having hit a high of 1.1720 yesterday. The downside i is likely being capped by more hawkish European Central Bank (ECB) expectations and reports suggesting a possible US-Eurozone auto trade deal. Focus on US-China trade war The… Top 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.
