The EUR/USD currency pair retreated on Monday towards the 1.1340 level after surging earlier to trade above the 1.1350 level. This happened following news that the US and China are going to agree on a trade deal. The pair recently breached the 61.8% Fib level in an upward movement, but it now looks to be under more pressure to pull back.
EUR/USD Fundamental Analysis
The currency pair gained significantly early on Monday following a tweet from President Trump that the US-China trade deal was near. Trump said that there was substantial progress in negotiations and that as a result, he was going to delay the tariff increment scheduled for Friday this week.
The greenback and the Japanese Yen are the two major currencies that seem to be doing bad following the bullish expectations of a good outcome from US-China trade negotiations. As such, any delays in tariffs are having a bad impact on the USD and this triggered the rally witnessed early on Monday. However, the USD fought back late on to push the pair back towards 1.1340 level
EUR/USD Technical Analysis (240 min Chart)
The EUR/USD currency pair appears to be trading within a downward trending channel coming off a bullish trend that ended in January. The pair is finding resistance around the key Fib level 61.8% and seems to be on a downward pressure to trend lower. Should this continue, the bears will be targeting profits at around 1.1271, which is the immediate support zone. The bulls can look to target profits at 1.1380 level, which coincides with the 50% Fib level.
EUR/USD Technical Analysis (The Daily Chart)
On the daily chart, the pair actually appears to be treading within a bearish converging channel that is forming a triangle. And looking at the recent touch-points for far, it looks like the EUR/USD currency pair is under pressure to move lower towards the baseline of the triangle. This could push it towards 1.1138, which would trigger a new multi-month low last witnessed in July last year.
In summary, the EUR/USD currency pair appears to be in a generally bearish trend on both the 240-minute chart and the daily chart. This gives the bears more influence as we end February 2019 and into the new month.