The Euro rises slightly higher following improvement in risk appetite among investors. Since yesterday, the general currency market has been quiet due to an absence of significant economic data and major political updates. For the Single currency specifically, the market still awaits any major updates relating to the disagreement between Italy’s government and the European Commission in regards to Italy’s proposed budget plan for 2019. Additionally, the market awaits any significant development related to Brexit with the next major advancement/update set to come during the weekend’s EU summit. For today, the Euro is expected to remain unchanged as US investors take a break for Thanksgiving Day. However, the short term bias remains on the upside as improved risk appetite drives investors towards high beta currencies such as the Euro.
The pair ranges between the 200-period moving average and the 50-period moving average. Such behavior is proof of indecision between investors due to the lack of fundamental drivers and major developments related to the disagreement between the EU and the Italian government. With that being said, the pair is expected to continue trading in this range until a fundamental trigger takes place. Depending on the fundamental trigger, the pair will either break above the 1.1431 resistance exposing the next level at 1.1468 or break below the 1.1358 support exposing the next level at 1.1320.
Support: 1.1358 / 1.1320
Resistance: 1.1431 / 1.1468