Wednesday, October 16, 2019

EUR/USD

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Fundamental Highlights

The Euro bounced from the important 1.10 support level after reports that the DUP has agreed to support an arrangement where Northern Ireland would stay in the UK customs territory, but stick to the EU custom rules on tariffs. However, the DUP’s party leader has denied those reports and PM Johnson still needs the DUP’s support to pass the Brexit accord in Parliament. That said, today’s US retail sales need to miss estimates by a big margin for a convincing breakout above the recent highs 1.1063

Technical Analysis

The Single currency bulls waited for the 1.10 retest before bouncing back towards 1.1030s, where the 50 and 200-day moving averages are also located. If the bullish momentum persists, the buyers will attempt to retest the recent highs 1.1063 and possibly extend gains towards 1.11. The bears, on the other hand, need to gather momentum and push below 1.10 to regain control.

Support: 1.1025 / 1.10
Resistance: 1.1065 / 1.11

Chart (H4)
EURUSD