eurusd

EUR/USD was benefitting on safe-haven flows in Friday, entering US trade +0.22% while the DXY was handed over to NY down -0.18% while traders concerns had been heightened with China urging the US away from a full-on trade war, after announcing tariffs of 15% to 25% on 128 US imports that account for around USD3 billion in trade in relation. 

Amongst the trade war angst, global equity markets continued to their northerly trajectory with the major US indices dropping a further -1.8 to -2.5% and European bourses were down -1.4 to -1.8%. There was also a bid in the euro with Trump temporarily excluding the EU and six other allies from steel tariffs at the same time as Eurozone leaders were giving a new push to reforms of the single currency area. 

EUR/USD opened around 1.2330 after a choppy European session, (EUR/USD ranged between 1.2317-48 and between 1.2300-1.2348 in Asia), while the chop continued early in the session before a sharp downturn in the greenback took hold and the single currency rallied on the back of another lift in EUR/JPY as well, hitting a high of 1.2730. As for US data, US Feb durable goods climbed 3.1% m/m, with core orders up 1.8% m/m. US home sales fell 0.6% to 618k. Fed policymakers were explaining that they are watching trade risks closely while mostly maintaining Powell's gradualist tightening message.

There is a bullish bias on the charts with the 21-D SMA supporting on dips. RSIs are bullish while the pair changes hands above the cloud top. There is a a broad 1.2100/1.2600 range in place with 1.2300 being a pivotal point.  A break of 1.2350 with bullish closes above  is now opening up a run towards and the case for 1.24 the figure. Through there, 1.2440 comes as a key level before the 2008-2018 resistance line that is located at 1.2680. On the flip side, 1.2220 and 1.2154 are next targets ahead of 1.2090. A close below 1.2154 and a subsequent break of 1.2090 would target the 1.1640 55 week ma on the wide.