7 Reasons To Sell EUR/USD Amid This Temporary Calm

5) Trade tensions have not abated: The arrest of Huawei’s Meng Wangzhou is still causing tensions between the US and China, casting a shadow on trade talks. Stocks have recovered on optimism, partly coming from Trump,but China remains frustrated with the arrest.

6) Hawkish Fed: Federal Reserve Chair Jerome Powell made another public appearance and remained bullish on the economy. He said the labor market is doing well in “various ways.” Did he hint of an upbeat jobs report?

7) Upbeat Non-Farm Payrolls: The US is projected to report job gains of around 200K in November, below the highs of October but still an optimistic number. Amazon’s pay increases are also set to push wage growth higher.

Will the NFP unleash a fresh round of USD strength?

EUR/USD Technical Analysis

(Click on image to enlarge)

EUR USD technical analysis December 7 2018

The technical picture for the world’s most popular currency pair is decidedly mixed. The Relative Strength Index and Momentum are not going anywhere fast. The EUR/USD is trading just above the 200 Simple Moving Average on the four-hour chart, but not going anywhere fast.

Support awaits at 1.1360 which provided support earlier in the day and served as both support and resistance in November. A more significant cushion is 1.1325 which was the gap line seen at the wake of the week, and it also provided some support on Thursday. The former double bottom and the round number of 1.1300 follows. Lower, 1.1270 and the 2018 trough of 1.1215 are noteworthy.

1.1380 is a minor line of resistance after working as a swing high early in the week. 1.1405 was a stubborn cap late in November. 1.1420 was the peak seen earlier this week. 1.1435 was \a peak beforehand. Further up, 1.1475 and 1.1500 are notable.

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