Good morning Traders,
Trust you are well.
Below is my analysis of the current price action on EURUSD amidst the trade war.
Overview
EUR/USD is trading within a descending channel, showing signs of a potential bullish breakout. Price recently rejected the 1.08115 support zone with a strong wick, suggesting buyer interest. Globally, trade tensions are escalating—President Trump reintroduced 34% tariffs on China, with China responding in kind. The EU is also planning a 25% tariff on U.S. goods, sparking further risk-off sentiment. US hinting at further extending tariff on China to 50%.
Idea
This analysis suggests a buy-the-dip opportunity near 1.08115, with a likely breakout toward 1.10127 and beyond. Safe havens like CHF and JPY are gaining, reflecting rising risk aversion. Despite the short-term USD strength, prolonged trade wars could eventually weigh on the dollar.
Conclusion
EUR/USD is gearing up for a move. I will watch for a dip to support before a bullish push around 1.08115 and 1.07689. With trade wars heating up and risk sentiment dipping, commodities and currencies are about to get spicy.
Do trade with caution.
Cheers and Happy trading!
Trust you are well.
Below is my analysis of the current price action on EURUSD amidst the trade war.
Overview
EUR/USD is trading within a descending channel, showing signs of a potential bullish breakout. Price recently rejected the 1.08115 support zone with a strong wick, suggesting buyer interest. Globally, trade tensions are escalating—President Trump reintroduced 34% tariffs on China, with China responding in kind. The EU is also planning a 25% tariff on U.S. goods, sparking further risk-off sentiment. US hinting at further extending tariff on China to 50%.
Idea
This analysis suggests a buy-the-dip opportunity near 1.08115, with a likely breakout toward 1.10127 and beyond. Safe havens like CHF and JPY are gaining, reflecting rising risk aversion. Despite the short-term USD strength, prolonged trade wars could eventually weigh on the dollar.
Conclusion
EUR/USD is gearing up for a move. I will watch for a dip to support before a bullish push around 1.08115 and 1.07689. With trade wars heating up and risk sentiment dipping, commodities and currencies are about to get spicy.
Do trade with caution.
Cheers and Happy trading!
Trade active
Price didn't hit the demand zone before rallying to the upside.Trade closed: target reached
Since yesterday’s update, EURUSD did not dip into the anticipated demand zone. Instead, the pair broke out of its descending channel and rallied impressively—gaining over 100 pips to the upside (which was our overall expectation).
At present, price is at another key resistance zone. A confirmed breakout above this level could open the door for a continuation toward the 1.12046 and 1.12570 targets.
However, failure to breach this zone may trigger a pullback, with potential support levels seen at 1.08186 and 1.07482. These areas present a higher probability for a renewed bullish reaction.
Note
EURUSD moved in the projected directions. It moved to the downside by +155pips and thereafter changed direction, breached the resistance zone and rallied to the upside by +145pips.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.