The Euro drops further as risks of a no-deal Brexit grow. Prime Minister Theresa May’s Brexit plan is currently facing opposition from political parties in the UK as many fear that the UK will remain indefinitely within the EU’s customs union, disallowing the UK from making its own private trade deals. The Euro is also pressured by bearish investors digesting last week’s comments from ECB’s Mario Draghi who warned of possible slowdown in the euro zone’s growth in the next two years. Additionally, the Euro is also pressured by a strengthening US Dollar following last week’s hawkish remarks from the US Federal Reserve.
The Euro started the week lower and was able to break below the 1.1299 support. The break below the 1.1299 support represented a break below the yearly low which paves the way for a drop towards the next key support level at 1.1250. The pair's momentum is clearly bearish with prices trading below all three major moving averages.
Support: 1.1299 / 1.1250
Resistance: 1.1347 / 1.1390