EUR/USD has been pretty bearish during the first two weeks of November, but last Thursday we saw a bullish reversal. The USD turned bearish after Powell’s comments that nothing is booming in the US economy right now, which he made during his testimony at the US Congress.

That might be true; nothing is really booming in the US as of now, but the rest of the globe is in a much more difficult position economically, especially the Eurozone. But, the sentiment is slightly positive in financial markets, which is helping risk currencies, while the USD is still feeling weak.

EUR/USD was finding resistance at the 50 SMA (yellow) last week when it turned higher, then the 200 SMA (purple) was doing so throughout this week, as the price was hanging around that moving average. But, the 50 SMA turned into support yesterday, as I highlighted in one of our articles and today the 200 SMA was broken clearly today as the price jumped higher on more positive tones from China.

China has invited the US trade delegation to China to continue trade talks, which is positive considering the fallout and the cold comments in the last few weeks. The “Phase One” deal still has some distance to cover in order to go official, but those comments from China were enough to keep EUR/USD bullish.