Wednesday, October 23, 2019

EUR/USD

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Fundamental Highlights

The Euro pulled back yesterday as the UK Parliament rejected Brexit timetable and in turn dented the market sentiment. Focus today is on the German 10-year Bund Auction after dropping four basis points yesterday. The Single currency could suffer a deeper drop, if the German 10-year bond yield extends yesterday's four basis point drop to -0.38%. In addition, the US Dollar may find support, adding to the bearish pressures on the European currency, courtesy of the risk-off mood in the equity markets.

Technical Analysis

The Single currency bears broke below the 1.1130 key level as well as the short-term bullish trend, eyeing next the medium-term trend and the 50-day moving average for a retest. The bulls need to find a strong bid around those levels if they want to remain in control.

Support: 1.11 / 1.1065
Resistance: 1.1130 / 1.1165

Chart (H4)
EURUSD