Directionless mode in expectations of clearer signals from trade talks
The pair dipped to the session low in early US trading on Friday, following the latest comment from President trump, who said that tariffs story was completely wrong, without providing further explanations.
China’s officials are expected give news briefing on trade negotiations with US later today.
Conflicting news about trade conflict kept the pair within wide range but generally directionless as long-legged Doji candle is forming on daily chart.
Daily techs remain bullish but the pair faces strong headwinds from pivotal barriers at 109.36 (61.8% of 112.40/104.44) and 109.62/79 (100/200WMAMA’s) break of which is needed to signal bullish continuation.
Main focus will remain on US/China trade talks as traders await 15 Dec deadline on which the US is to introduce new tariffs on Chinese goods.
Safe-haven Japanese yen would benefit in such scenario and advance towards strong barriers at 108.40 zone.
On the other side, delay in implementing new tariffs, which is anticipated by markets, would revive risk appetite and inflate dollar.
Res: 109.44; 109.70; 109.78; 110.00
Sup: 109.23; 109.07; 108.98; 108.78