The Euro retraces back up for the second day in a row as the UK and the EU reach an agreement regards to Brexit. The Single currency pushed higher as some of the uncertainty related to Brexit has been lifted as Prime Minister Theresa May reached an agreement with the European Union. However, May is still left with convincing the UK parliament to vote for the proposed deal with the EU. Voting “yes” for the deal is not ensured and this is why the Single currency failed to rise greatly. For today, the main focus will remain on any developments related to Brexit as traders will monitor how UK politicians will react to yesterday’s Brexit deal. Additionally, traders will also keep an eye on any retaliation from the European Commission as the Italian government refused to make amendments to its proposed budget plan for 2019. Finally, the Single currency may be moved from the US Dollar's side as the US Retail Sales figures are set to be released one hour before the opening of the US market.
The Euro just broke above the 1.1331 resistance exposing the next key resistance level at 1.1370. The break of this level is crucial given that it also coincides with the 50-period moving average signaling a shift in the medium term bias of the pair. For now, the fundamental and technical bias remain upwards, unless we start seeing UK politicians publicize their outrage with the proposed Brexit deal.
Support: 1.1215 / 1.1150
Resistance: 1.1331 / 1.1370