EUR/USD breaks 1.20 for the first time since January, consider to short EUR/USD at peak.
The dollar index rose above 200-DMA (daily moving average) and ongoing trade conflicts around the world pushed EUR/USD below 1.20 overnight.
The chart below shows the Dollar index broke above 200-DMA for the first time since May 2017.
European Union and businesses warned of more market uncertainties following the Trump administration’s decision to delay US steel and aluminum tariffs for the next month.
US decision prolonged market uncertainty, which is already affecting business decisions around the world. For example, China Caixin PMI exports orders in April fell below 50, data showed this morning.
Treasury Secretary Steven Mnuchin is leading a contingent of cabinet members to China tomorrow.
We are seeing EUR/USD immediate resistance level at 1.2040.
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