by SignalFactory · November 4, 2019 | 07:11:14 UTC
The
US-China trade optimism will likely bolster the bullish technical setup in
EUR/USD, yielding a rise to the 200-day average at 1.1195. The pair is
currently trading at 1.1170, representing marginal gain on the day.
The
path of least resistance, therefore, is to the higher side. The bullish
pressures could be strengthened by the US-China trade optimism and the
resulting risk-on in the equities.
The
US Commerce Secretary Wilbur Ross on Sunday said that licenses for American
firms to do business with the blacklisted Chinese telecommunications giant
Huawei will be granted “very shortly.”
Ross
added further that the US and China have come far with phase one of the trade
deal and an agreement could be signed soon.
Germany,
the Eurozone’s manufacturing powerhouse, has taken a big hit due to the
US-China trade war. The trade optimism, therefore, could bode well for the
German economy and the Euro.
On
the data front, the final Manufacturing PMI numbers are due for release across
the Eurozone. Also, Eurozone’s Sentix Investor Confidence for November, due at
09:30 GMT, could influence the pair. Across the pond, the ISM-NY Business
Conditions Index (Oct) and Factory Orders (Sep) data are scheduled for release.
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