02.08.201912:41 Forex Analysis & Reviews: EUR/USD: slowly but surely approaching 1.1100

Highlights: Trump announced additional tariffs for Chinese imports, the Non-Farm Payrolls index is expected to rise in the US, the euro is positive and currently the EUR/USD pair is preparing to overcome the barrier at around 1.1100 dollars.

The pair managed to survive the pessimism after the FOMC decision, having rebounded from the lows of the beginning of the year within the limits of 1.1120 dollars. The dollar retreated from recent highs after US President Donald Trump unexpectedly announced new tariffs worth $300 billion on Chinese goods. While trade wars came to the fore and became the main driving force behind asset price changes, investors are advised to pay attention to the US labor market report, where Payrolls reached nearly 170,000 in July and unemployment is likely to remain without change - 3.7%.

This is the reason why the sale of the euro will continue in favor of this decision of the Fed and the preparation of the ECB to a new wave of incentives, including the potential reduction in interest rates and the restart of the QE program. The head of the ECB said that rates would remain at the "current or lower-level", at least until mid-2020. The worsening economic outlook in the region and the lack of control over inflation currently limit the bullish sentiment towards the euro, as well as reinforce the ECB's dovish sentiment. Currently, the pair has shifted by 0.06% to $ 1.1090 and a breakthrough at the level of 1.1101 will aim for 1.1187 and further to 1,1229. On the other hand, the next support is noticeable at the level of 1.1026 dollars from 1.1021 and, finally, 1.0839 dollars.