Yesterday, Trump further toughened his stance toward China, threatening to prolong his trade war with Beijing, which signaled that it was prepared to fight back. Such an atmosphere between the two countries suggests we may not see any progress in negotiations that resume today.
As such, despite the fundamental picture doesn’t support for much more losses, the pair could get even lower should the risk sentiment fail to improve in the short term. The technical outlook for the greenback has deteriorated further after a break below the 110.00 threshold, with the pair suffered a slide through some technical support levels. The next support comes around 109.40 while on the upside, the pair needs to at least regain the 110.00 figure.