EUR/USD Daily Analysis: July 4, 2019 The EUR/USD pair may move close to the bottom and the present bounce off is due to the trade talks between China and the US on the weekend. In turn, this resulted in a correlation across the financial markets. The 10-year Treasury yields rallied from 2% while gold prices dropped lower than $1400 following a breakout in the previous week. The equity market is under pressure given that the S&P 500 drops from the resistance on the longer timeframe. It is not surprising that the dollar index bounced off more than the 200-DMA. A divergence between the dollar and other trading instruments has important in considering the trading since the dollar has not undergone a reversal like other assets. Yet, it is also not that logical to expect the euro major pair will further go down present the given fundamental event even looking at how aggressive the market sets in easing in July. Nonetheless, the pair seems to have been trading for just about 1.5% from the multi-year lows. There is significant confluence in the support close to the trading area which is at the 100-MA and the lower bound channel at 1.1264. Bull traders will meet an obstruction at 1.1305, which pushed the pair lower yesterday. The data of NFP on Friday will bring in some volatility to the pair. For now, the pair will likely to continue in consolidating within the range. Support is expected to be close to 1.1264 and the markets are probably not assured with the short-term trade war truce.