The popular pair EUR/USD hold its profits that gained yesterday as markets remain to relax on trade tensions with China even with the further comments by United States President Trump against China. Now the eyes are on the Euro-zone Flash PMI's.
A 10% tariff on $200 billion worth of Chinese goods was implemented earlier this week by the US Administration. Then China's response was moderate, and the tariff level is relatively low. The EUR/USD went back from the previous high but is now recovering after an intraday retracement that was above the previous resistance at the 1.1728 level. Then the pair pauses its advance many times the last days, and where it set its high in August. At the 4 hours, timeframe chart EUR/USD bounced from a bullish 20 SMA while the Momentum indicator holds its bullish sentiment above its 100 level. If we examine the RSI we can see that has reached its overbought area and lost some upward momentum.
US Fed is under extreme pressure from broader markets
Daily Analysis - 21/09/2018