EUR/USD closed lower for a second consecutive day Friday, as the extreme overbought conditions together with some positive risk-related headers brought the chance for profits. The pair closed at 1.1437, slightly up on weekly basis, but reversing a three-week losing streak and after bottoming at 1.1300. Technically the pair is in corrective mode and yet far from bullish stance.
EUR/USD is pushing above the 1.1660 level, which level is providing a strong static support now, followed by 1.1630, the 23.6% retracement of the August rally. Breaking above the last one would lead the pair to the upside, with next target the August high at 1.1733. Indicators ont he four hour time frame are confirming such advance, as price now is developing above all of its moving averages. RSI and stochastic maintain their bullish slopes and are close to weekly highs.
I think because of Trump announcement of going ahead with China trade war tariffs, the eur/usd Forex pair could be moving lower. If it breaks below 1.15650. Target 1.15000 area. We shall see. Lots of European inflation data coming out this coming week and ECB president Mario Draghi will be speaking on Tuesday and Wednesday.
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