EUR/USD slips back below the 200-hour moving average
Risk assets are pushing more gains on the day and the dollar is also joining in on the fun by extending its good form on the new week. EUR/USD is now down by 0.4% on the day, hitting a session low of 1.1323 as price looks to break below the 200-hour MA (blue line).
If sellers manage to hold a break there, that'll present a more bearish near-term bias and they'll be looking towards pushing further short-term gains amid market optimism from the trade truce between US and China over the weekend.
Currently, support is seen from the 38.2 retracement level @ 1.1324 but after that it'll be bids around 1.1290-00 eyed next for sellers.
With a trade truce being struck over the weekend, it's continuing to benefit the greenback as markets look to price out odds of the Fed cutting rates in a substantial manner over the next few months.
However, as mentioned over the weekend, give it some time and the euphoria is likely to settle down unless there are positive developments to suggest that a trade deal can eventually be struck. Otherwise, outstanding structural issues will remain a challenge to be resolved and that'll eventually eat at the optimism in markets that we're seeing currently.
