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EURUSD – price action

EUR/USD had another bounce from area of key support at 1.1175. After a week of steady decline, the pair is attempting to recover overnight based on positive news  from US-China trade talks. Headlines substantially improved the risk note on stock markets and affected risk currencies too.  

Fundamentally, EURUSD was demonstrating weakness due to the recent bleak  economic readings from Eurozone. Next headlines today will be the releases of retail sales and later after US  markets open, we expect US  ADP labour report and  ISM data  for the month of March.

EURUSD 4 hour chart

Technical picture reveals further potential for gains, however, the road will be bumpy. There are several strong resistance levels: at 1.1250 and a solid cluster at 1.1290-1.1310. Price needs to break above  those levels before any meaningful further recovery is possible.

However, all eyes on key support at 1.1175 because price had repeatedly, again and again, drifts towards it. We played bounce each time, however, I would be very much cautious if price declines again towards 1.1175. This will be an essential  sign of weakness and potential to break below will trigger cascade of stops with 

Have a nice day and safe trades !