EUR/USD trades weak on easing trade tension between the US and China. It hits an intraday low of 1.15828 and is currently trading around 1.15852. Intraday trend remains bearish as long as resistance 1.1660 holds.
Signs of de-escalating US-China trade tensions emerged as President Trump adopted a conciliatory tone in a Truth Social post, assuring followers "Don't worry about China, it will all be fine!" and emphasizing that "trade relations with the country will all be fine," while expressing empathy for President Xi Jinping's "bad moment" and stating, "He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!" This softened rhetoric aligns with upcoming diplomatic engagements, including Treasury Secretary Scott Bessent's confirmation of US-China discussions later this week and a highly anticipated Trump-Xi meeting at the APEC Summit in South Korea, timed for later this month to extend the 90-day trade truce set to expire on November 10. Key negotiation priorities include Trump's demands for China to cease manipulating rare earth elements, resolve the fentanyl crisis, and address soybean trade disputes, signaling potential progress in stabilizing bilateral economic relations.
The pair is holding below the 55 EMA, 200 EMA, and 365 EMA in the 4-hour chart. Near-term resistance is seen at 1.1650; a break above this may push the pair to targets of 1.1670/1.1700/1.1765/1800/1.1835/1.1850/1.1920. On the downside, support is seen at 1.15750; any violation below will drag the pair to 1.1540/1.1480/1.1435.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bearish
Average Directional Movement Index (ADX) - Bearish
It is good to sell on rallies around 1.1620 with a stop-loss at 1.1670 for a target price of 1.15250/1.14650.
