The EUD/USD currency pair moved up and got stuck when faced with the last week’s 1.1720 level. Afterwards, the currency pair experienced an increase to 1.1800 which marked it the highest ever since July. The 1.1800 became a level that is eyed by many traders. The EUR/USD is currently trading above the 50 and 200 simple moving average on a four-hour price action analysis chart. The relative strength Index of the currency pair chart is pointing higher with a positive momentum.
The EUR/USD currency pair attains significant gains as the United States announced new tariffs on China on a two hundred billion dollar worth of product. With this news release, forex market reacts as expected and takes a turn around in invents. August inflation stood at 2 percent which was seen as a bang on European central bank’s target. However, the news didn’t have an effect on President Mario Draghi (ECB’s president).
TECHNICAL LINES OF EUD/USD CURRENCY PAIR FROM TOP TO BOTTOM
- 1.191 was the low point of EUD/USD in early January which was relevant. On the 14th day of the month of June, the peak was stated at 1.1850 before President Mario Draghi drives the Euro down. Finally, the pair rested at 1.1800 in mid-September.
- 1.1750 held the currency pair for four times in the month of July and marked a powerful level.
- Being a veteran line that functions in both directions, 1.1720 capped the EUR/USD currency pair in mid-September while the 1.1650 line became a swing low in the month of August. The 1.165o line was closely followed by the 1.1630 line which held the price of EUD/USD currency pair down in mid-august.
- 1.1580 line functioned as a support level in late August. The 1.1530 line supported the currency pair within two periods in August which marked it an important line of interest. The 1.1435 line held the currency pair (EUR/USD) down while trading around the yearly low.
- Being a round number, 1.1300 line held the currency pair down in mid-august and in the month of July.
TECHNICAL CONFLUENCE INDICATOR CHART FOR EUR/USD
The confluence indicator above shows that the EUR/USD currency pair is capped by the 1.1715. The 1.1715 is stated as the convergence of the pivot point one-day support 1 indicator, the Bolinger band one-hour lower and the simple moving average SMA 10-one day.
The 1.1769 anticipates a very strong resistance at the Fibonacci 38.2 percent one-day, the Bolinger Band 4h-Middles and the simple moving average 200-15m, the simple moving average 100-1h, the simple moving average 5-one-day, and the Fibonacci 23.6 percent.
Forging downwards, a weak confluence support level is located on the price action chart. 1.1690 level is the Fibonacci 61.8 percent one-week and the Bolinger Band 15-Lower. The 1.1647 level is the converging point of the pivot point one-week support 1 and the pivot point one-day support 3.
In conclusion, the unimpressive inflation that takes place in the euro-zone could cause harm to the currency pair.