With risks mounting ahead of the G20 meeting and high-profile Fed speakers, EUR/USD traders are biding their time. A large doji has formed on the monthly chart, which suggests traders see EUR/USD at a crossroads. With the focus on the Trump-Xi meeting, the G20 gathering at the end of the week could provide EUR/USD a lift if the markets' worst fears aren't realized.
Markets have already priced in risks to global trade so even minimal progress could support risk markets and, therefore, soften the dollar. Meanwhile, any dovish leanings by the Fed, particularly Chairman Powell, would depress U.S. yields and lead traders to reduce dollar long positions, though EUR/USD gains would be a grind given ECB chief Draghi's less-than-upbeat speech on Monday.
Any rally would need to clear the 55-DMA and 1.1500 area to put bulls in control.
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