EUR/USD falls to test weekly lows on US/China trade deal concerns

• US dollar gains momentum after reports US-China trade deal could be delayed to December.
• EUR/USD drops for the third-day in-a-row, hits lowest in almost three weeks. 

The EUR/USD pair fell to 1.1063, slightly above Tuesday’s low amid a stronger US dollar across the board. It is testing weekly lows, after a short-lived recovery that found resistance at 1.1090. 

US-China headlines create some volatility on a quiet day 

On a relatively quiet day, Reuters reported that a senior Trump administration official mentioned the US-China deal could be delayed until December, and triggered some volatility, favoring particularly the Japanese yen and gold. 

The US dollar rose further versus the euro and turned positive for the day. Now it is about to post the third gain in-a-row and the lowest close in almost three weeks. 

EUR/USD biased to the downside 

The pair continues to be biased to the downside and below the 1.1060 area (strong support) more losses are expected. The next support might be seen at 1.1045 and 1.1020. On the upside, the immediate resistance is the 20-hour moving average at 1.1077 followed by 1.1090.