The euro hit a three-week high against the US dollar on Tuesday, continuing its strong gains for a fourth straight day as risk averse investors focused on buying low-yielding currencies amid strong signs of a global currency war, - China's local currency "yuan" fell to its lowest level in 11 years, and the United States accused China of manipulating the currency.
The euro rose against the dollar by more than 0.4% to $ 1.1249 since July 19, the opening price of $ 1.1202 and the lowest at $ 1.1190.
The euro ended yesterday's trading up 0.9% against the dollar, its third consecutive daily gain, and the biggest daily gain since Jan. 25, after the Chinese yuan's massive fall in the global market.
Over the past week, the euro fell 0.2% against the dollar, its third weekly loss in a row, as US interest rates fell more than once this year.
The dollar index fell 0.2% on Tuesday, extending its losses for a fourth day in a row, reaching a two-week low of 97.21 points, reflecting the continued decline of the US currency against a basket of major and minor currencies.
The decline comes as risk averse investors, with strong signs of a global currency war, especially after the sharp drop in the yuan exchange rate and China's manipulative currency rating for the first time in decades.
The Chinese authorities on Monday allowed the local currency, the yuan, to give up the 7 yuan mark per dollar unit for the first time since the global financial crisis, in China's strongest reaction to the United States escalating the trade war between the world's two largest economies.
After the latest round of trade talks between Washington and Beijing, which took place on Tuesday and Wednesday in Shanghai, China, US President Donald Trump decided on Thursday to impose an additional 10 percent on the remaining Chinese goods, $ 300 billion, starting from the first September.
US Treasury Secretary Stephen Menochin said on Monday that the US government had decided to consider China manipulative in its currency and would engage with the International Monetary Fund to eliminate unfair competition from the Chinese government.
The US classification of China as a currency manipulator is the first since 1994, and grandparents in indicators of worsening tensions between the two largest economies in the world, and as a major escalation in the trade war between the two countries for about a year.
Technical Analysis
The EUR / USD pair breached the 1.1180 level after closing the daily candlestick above it, leading the price to achieve further gains over the coming period, on its way to visit 1.1350 and 1.1443 as the next positive targets.
Therefore, the bullish trend will be likely during the day unless the level of 1.1180 is broken and stability below it again, as this break will reactivate the negative scenario, which is located next target at 1.1000.
The trading range for today is expected among the 1.1120 support and the 1.1300 resistance
The general trend for today is bullish.