The Euro moves slightly higher amid indications of a possible Brexit deal. Yesterday, UK’s Cabinet Office spokesman David Lidington made a radio appearance with BBC Radio 4, mentioning that a Brexit deal is “almost within touching distance”. The possibility of a Brexit deal increases the demand for the Euro as it trickles down uncertainty within the region. In addition to positive Brexit news, the Euro is also being supported by an increase in demand for risk-on currencies following news that US-China trade negotiations are back on schedule. For today, traders need to mainly focus on any development related to the Brexit negotiations and also monitor any retaliation from the European Commission following the Italian government’s refusal to make amendments to its proposed budget plan for 2019.
The Euro is currently ranging above the 13-period moving average signaling indecision between traders. If traders break below the 13-period moving average then this will mean that the bearish sentiment surrounding the Euro remains in place and the currency will drop back towards the 1.1215 support level. If traders manage to keep prices above the 13-period moving average then this will indicate that traders are starting to feel optimistic about the future of the currency. However, a rise will only be confirmed if prices break above the 1.1331 resistance given that this level was rejected during yesterday's trading.
Support: 1.1215 / 1.1150
Resistance: 1.1331 / 1.1370