[KostiaFM]

EUR/USD Daily Analysis: July 1, 2019

Volatility is present early this week following the previous range-bound trading of the various instruments in the market in the background of ongoing US-Sino trade talks. News on tariff and restriction to Huawei telecom company pushed the equity markets higher and pressured the dollar. Although, this may not last long.

Moreover, pessimistic forecasts of several fundamental data such as the Manufacturing PMI from European countries will further weigh on the common currency. This is in line with the global economic situation in China and Japan, as well as other Asian countries.

The euro major pair has made a significant breakdown today. Other major pairs also experienced such event as seems like a reversal in short-term. However, we should take note of the 200-MA, which is being tested by the US dollar index that could trigger the pair to decline.

Previously, the center of interest was on the fall of the pair at the level of 1.1347. Aside from it being the resistance level, it had a confluence on the 200-MA on the daily and weekly chart.

As for the support, there were several attempts until it broke down earlier this day, which can become the resistance level. Staying on the levels below could induce a correction to the pair and likely to rise higher than 1.1385, which will be favorable for the EUR/USD bulls.

For now, we can expect strong support at 1.1305 with confluence to the 100-MA on the 4-hour chart. Overall, the short-term gives a bearish tone and a breakout to 1.1385 would confirm the continuation of the previously bullish sentiment in the markets.