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EURUSD remains bearish, still threatens 1.10
Forex
11/12/2019

EURUSD remains bearish, still threatens 1.10

Despite a modest bounce seen at the start of the week, EURUSD remains in a bearish mode and needs to stage far more decent gains to feel more comfortable.

Despite a modest bounce seen at the start of the week, EURUSD remains in a bearish mode and needs to stage far more decent gains to feel more comfortable. The pair suffered aggressive losses last week and still licks its wounds not far from the 1.10 handle, which remains at risk.


In the short term, the common currency will pay attention ZEW survey out of Eurozone and Germany. Should the results come in line with expectations, the pair will hardly show a significant reaction as traders will focus on the upcoming Trump’s speech at the New York Economic Club. Investors hope that the US leader will give more clear signals on the trade talks with China. His remarks will set the tone for all asset classes and could bring the additional volatility to the markets in the short term, especially after the latest contradictory signals from the trade front.


The technical picture shows that the euro remains vulnerable to further losses at least in the short term and could get back below the 1.10 handle should risk aversion reemerge any time soon. On the upside, once above the 100-DMA at 1.11, the downside risks will abate. In the weekly charts, an important resistance comes around 1.1180.

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