The Euro regained traction and entered Monday’s US session in firm tone and retraced the largest part of Friday’s fall, bringing bulls back to play. The dollar fell in expectations of news about US – China trade conflict, as US President Trump is expected to announce new tariffs on imports from China as early as today. Expectations are for 10% tariffs, which is less than administration’s initial plan for 25% tariff on $200 billion worth imported goods from China. The EURUSD pair returned back above falling 100SMA (1.1672) and looking for fresh bullish signal on daily close above, to open way for test of 28 Aug high at 1.1733 and extension towards pivotal barrier at 1.1780 (Fibo 38.2% of 1.2555/1.1300 descend. Inverse Head and Shoulders pattern is forming on daily chart, with the neckline (1.1716) being under pressure. Sustained break higher would complete the pattern and to bullish signals from strengthening momentum and daily MA’s in bullish setup.
Res: 1.1716; 1.1721; 1.1733; 1.1780
Sup: 1.1672; 1.1646; 1.1615; 1.1568
