EUR/USD: Euro takes advantage of the risk off sentiment

• The Euro is trading flat at around 1.1440 as the market sentiment turned sour on US allegations against China´s smartphone giant day before the trade talks are set to begin in Washington DC.
• Investors are waiting for clues from the FOMC meeting due Wednesday.

The Euro is trading little changed against the US Dollar on Tuesday as the market is positioning for major risk events of this week including the Federal Open Market Committee meeting and the US non-farm payroll report on Friday this week. In lack of the fundamental drivers, the currency market is surfing the wave of negative sentiment stemming from the trade talks uncertainty as the talks are set to begin tomorrow while the Chinese smartphone giant allegations are still on. 

The ECB's Mario Draghi tweaked his earlier dovish statement by saying that while the Eurozone is looking bleaker than anticipated, it’s that bad to warrant additional monetary support. The market sentiment was turning sour as the American prosecutors filed criminal charges against Huawei Technologies Co. alleging them for stealing trade secrets from their US rivals and also for bank fraud by conducting business with Iran and violating the US sanctions. As a result, the EUR/USD benefited from the US Dollar weakness and rose against the greenback for the second consecutive day above 1.1400.

The EUR/USD extended its up move towards the 100-day simple moving average (SMA) of 1.1450 on Tuesday. 
Earlier on Tuesday China's foreign ministry said that Beijing would protect the lawful interests of Chinese companies, which in-turn raised bars against a successful trade-talks between world's two largest economies.

On the chart, a daily closing beyond 100-day simple moving average (SMA) figure of 1.1450 can propel the EUR/USD up moves to 1.1500 and the 1.1530 whereas 1.1385, including 50-day SMA, followed by 1.1345, can offer immediate supports during the pair's U-turn.