EUR/USD: Global growth fears may weigh over the EUR

EUR/USD posted mild gains in Asia, despite the weaker-than-expected China trade data release.
The heightened fears of a global growth slowdown, however, could cap gains in the euro.

Omkar Godbole FXStreet Contributor

The EUR/USD pair could come under pressure in Europe, as the global growth fears triggered by the below-forecast China trade numbers are likely to reverberate through the European and the US financial markets.

China, the world's second-largest economy, reported a trade surplus for December. That, however, was the product of a big slide in imports and a meager rise in exports.

Put simply, the domestic demand in China is unlikely to compensate for the decline the downward pressure on the economy created by the trade war with the US. As a result, the growth rate could drop sharply in the near future.

Further, the dismal rise in Chinese exports could be considered a sign that the global economy isn't doing any well either.

The stocks, therefore, could feel the pull of gravity, boosting the haven demand for the treasuries (US dollar). As of writing, the S&P 500 futures are down 0.70 percent.

Hence, the EUR/USD may drop into the red in Europe. As of writing, the pair is trading at 1.1473, having picked up a bid at 1.1458 in Asia.

EUR/USD Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.1476
    Today Daily change: 13 pips
    Today Daily change %: 0.113%
    Today Daily Open: 1.1463
Trends:
    Previous Daily SMA20: 1.1423
    Previous Daily SMA50: 1.1384
    Previous Daily SMA100: 1.1476
    Previous Daily SMA200: 1.1627
Levels:
    Previous Daily High: 1.1541
    Previous Daily Low: 1.1458
    Previous Weekly High: 1.1571
    Previous Weekly Low: 1.1396
    Previous Monthly High: 1.1486
    Previous Monthly Low: 1.1269
    Previous Daily Fibonacci 38.2%: 1.1489
    Previous Daily Fibonacci 61.8%: 1.1509
    Previous Daily Pivot Point S1: 1.1434
    Previous Daily Pivot Point S2: 1.1404
    Previous Daily Pivot Point S3: 1.1351
    Previous Daily Pivot Point R1: 1.1516
    Previous Daily Pivot Point R2: 1.157
    Previous Daily Pivot Point R3: 1.1599

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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