In the last few weeks, I've been highlighting that positive news on the trade front would have likely boosted the greenback in the short-term because of overstretched positioning. When you are at such overstretched levels, as soon as conditions change, the repricing can lead to meaningful corrections.
This is the best case scenario I've outlined here. We should see further gains for the greenback as the market might even start to doubt the need for two rate cuts, but for that, stronger economic data might be needed.
On the 1 hour chart, we can see the strong move to the downside following the US-China news. That was the time to sell as we might not get a good pullback after such a surprising news. Remember that the market's reaction is stronger when it gets surprised. If we do get a pullback though, we should find sellers around the minor downward trendline near the 1.12 handle. If the price breaks higher, then the buyers could take the price to the next resistance around the 1.1277 level.
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( EURUSD broke through the key support and it's now eyeing the 1.09 handle )
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