The EUR/USD currency pair advanced beyond 1.0400 on Wednesday, driven by a decline in the US Dollar's risk premium amid diminishing global trade war concerns. The European Central Bank is anticipated to continue reducing interest rates, supported by confidence in the disinflation trend towards their 2% target. Investors are awaiting key US economic data, including the ADP Employment Change and the ISM Services PMI for January.
EUR/USD rises above 1.0400 as the risk-premium of the US Dollar eases amid diminishing fears of a global trade war . The ECB is expected to continue reducing interest rates amid confidence that the disinflation trend towards the 2% target is intact. Investors await the US ADP Employment Change and the ISM Services PMI for January. EUR/USD advances above 1.0400 in Wednesday’s European session. The major currency pair gains as the US Dollar extends its losing streak for the third trading day.
However, the pair is still below the 50-day Exponential Moving Average , which trades around 1.0440, suggesting that the overall trend is still bearish. The 14-day Relative Strength Index oscillates in the 40.00-60.00 range, suggesting a sideways trend. Looking down, the January 13 low of 1.0177 and the round-level support of 1.0100 will act as major support zones for the pair. Conversely, the psychological resistance of 1.0500 will be the key barrier for the Euro bulls.
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