The dollar is trading mixed on Monday, after a retreat late last week. The risk-off sentiment has ebbed somehow amid the upcoming US-China trade talks, which eases the upside pressure on the greenback. But the bearish potential sill looks limited as investors don’t hope for a major breakthrough in the resuming negotiations.
As for the EURUSD pair, the price is under a selling pressure again, following two days of recovery. The 1.15 area remains the key on the upside, and the longer the single currency stays below this level, the higher is the risk of a deeper retreat, down to the 1.13 major support.
The buck could receive support this week from the FOMC meeting minutes due on Wednesday, while the upcoming Powell’s testament at Jackson Hole on Friday could help the USD to stay afloat this week amid the optimistic market expectations. Traders will also continue to follow the US-China trade developments as any signs of easing tensions will limit the dollar’s upside potential.
The immediate resistance for EURUSD comes at 1.1450, while support lies at 1.14. A break below this level will open the way to 1.1370.
By Helen Rush
Senior Analyst at Capital Markets