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EURUSD still capped by the 100-DMA
Forex
11/20/2019

EURUSD still capped by the 100-DMA

The EURUSD pair failed to break above the 100-DMA on several occasions and stays below this line since early-October

The EURUSD pair failed to break above the 100-DMA on several occasions and stays below this line since early-October. After four days of gains, the euro resumed the decline on Wednesday, though the downside pressure looks limited so far.


Dollar demand piсked up slightly as risk sentiment turned sour after Trump threatened once again to hike tariffs against China next month should the two countries fail strike a partial trade deal by that time. In fact, there was nothing new in this warning but it served as a reminder for investors about a tight position of the US President in his trade spat with Beijing.


The subsequent safe-haven demand triggered a local rise in the greenback against high-yielding counterparts. As a result, EURUSD slipped back to the levels just above the 1.1050 intermediate support.


At the same time, dollar demand remains limited as traders switched into a wait-and-see mode ahead of the FOMC meeting minutes due later today. Should the central bank disappoint the USD bulls by its dovish tone, the euro could regain strength in the near term. However, it will hardly be enough to make a clear break above the mentioned moving averages which now comes around 1.1090.

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