The EUR/USD pair pushed off the 1.11 mark in response to expectations about the acceleration of the eurozone economy and the signing of the first phase of a trade agreement between the United States and China.
The thaw in Washington-Beijing trade relations, as well as signs that the Chinese economy was groping for the bottom, were good news for the euro. In addition, the geopolitical risks in the Middle East quickly came to naught. Obviously, headwinds for global and European GDP are gradually weakening, which allows the bulls to return to the game at EUR/USD. Further disappointing data on inflation and US retail sales for December and the publication of a minutes from the last meeting of the ECB Governing Council can contribute to the main currency pair's further growth.
In addition, not even a few months have passed since Christine Lagarde took the helm of the ECB, and relations between the European regulator and the Bundesbank have noticeably improved. Earlier, the head of the German central bank, Jens Weidmann, took all the decisions of the French predecessor, Mario Draghi, with hostility, but now he supported her with a statement about the need for fiscal stimulus from Berlin. This is possible if the positions of politicians are close. The fact that Lagarde wants to be a "wise owl" and not a dove is a favorable factor for the euro.
While the bulls on EUR/USD are trying to storm the resistance at 1.1135, however, to regain confidence in their abilities, they need to push quotes above 1.1155.
It should be noted that the level of 1.1150 acts as a strong area of resistance, where the weekly high and support for the downward trend converge.
It is expected that growth above 1.1150 will introduce resistance levels of 1.1170, 1.1205, 1.1230 and 1.1240, which have shown themselves on the eve of the New Year.
The material has been provided by InstaForex Company - www.instaforex.com