The US dollar well bids in this Asian session against the G10 currencies. The euro added 0.45% to sell for 1.1550, erased overnight gains this morning.
In case of easing trade tensions between the world’s two largest economies US and China, global risk sentiment should further improve. EURJPY and EURCHF relatively exposed to risk sentiment.
EURUSD is likely to find the support between 1.1530-1.1500 levels, currently trading at 1.1560. The price has surged more than 2.5% from last week’s low but would still need to rose another 1.20% to erase all of the monthly losses and is necessary to rose more another 2.0% to erases all the YTD losses.
The two-day technical landscape has turned neutral. Especially last weeks “Doji morning star” candle pattern and divergence developments have pushed the weekly bar higher to 1.1610 from 1.1500.
Ahead of today’s PMI surveys ( EA and US) pivotal intraday spread between 1.1530-1.1490 below here 1.1445 and 1.1390 exists. From Jan-Feb high’s the euro completed the 5wave decline. We expect the current rally has completed the impulse wave a. Now we are retracing back, marked as wave b either 1.1530-1.1490 or 1.1400-1.1370. Finally, another impulse wave c we forecast at either 1.1700 or 1.1780 its 38.2% fib reaction.
Beyond today, there will be focus annual Jackson Hole Symposium( Fri ).