Friday, November 2, 2018

EUR/USD - 02 November 2018

Tags

Fundamental Highlights

The Euro rises for the second day in a row as positive Brexit dialogues boost the currency. Two days ago, the EU and the UK reached an agreement on a financial services deal post Brexit which investors are relying on to pave the way for further agreements between the two panels. Moreover, Brexit Secretary Dominic Raab suggested that a deal may be struck as soon as the 21st of this month. The Euro was also supported by weakness in the US Dollar which suffered as safe haven demand declined following easing trade tensions between the US and China. For today, the focus will be on the greenback’s intra-day movement as the market awaits the NFP report for October.

Technical Analysis

The Euro breaks above the 13-period moving average and trends higher. The break above the 13-period moving average signals a shift in the short term bias of the pair. For now, the pair is projected to remain unchanged until the NFP report release. Positive economic data from the US will push the pair lower back towards the 1.1332 and negative data will push the pair higher towards the 50-period moving average at 1.1446. Note that a break below the 1.1332 will pave the way for further losses and push the pair lower towards 1.1285. A break above the 50-period moving average and the 1.1446 level will pave the way for a rise towards 1.1533.

Support: 1.1322 / 1.1285
Resistance: 1.1371 / 1.1446

Chart (H4)
EURUSD

 
Billion
Positions Opened
 
Thousand
Active Users
 
Trillion
Traded Value