Euro closed strong on Fridays at 1.11360 against the dollar as tensions on trade continues. China announced another tit for tat 75 billion on Tariffs in response to Trumps rant. Note that any rumorís of good news in this bad news environment, would momentarily rally the dollar. However remain dollar short for the meantime.
This pair remains stead- fast within its Primary trend descending channel and . Any break above the descending channel could signal bull pressure to target 1.1215 and if bears then fail to defend the aforementioned level then Bulls get paid at 1.1270 which in turn sets sight on 1.1259.
The nearest support on Euro is 1.1072 which has proven to be solid for the past 2 weeks which we have all traded multiple long positions from. And below that support, if fails the key supports are 1.10268. Now if 1.10268 fails on any good news regarding trade tensions I can guarantee you that the euro will contract to the support at 1.09025.
I do expect this pair to expand for the short term I would not be surprised if the descending channel fails during the week and a rally will then materialize. Expect a dip at open then buy back this on this pair at the daily pivot point which is yet to be announced.
Support And Resistance
Key Resistance Descending channel top 1.1140 1.1215 1.1281 1.1259 1.1323
Key Supports 1.0726 1.105 76 1.1026 1.0902
Look for a dip at the channel then buy Eur/USD at 1.1100 or alternatively buy high at above for a potential break out of the channel at 1.1150. Note this pair should be considered bearish whist the upper level of the channel remains intact.
1-hour Chart EUR/USD
Please note the Descending channel and the white dashed lines represent key levels. These lines should be viewed as targets and support and resistance. The Descending channel should be viewed as support and resistance until proven otherwise.