The Single currency rallied yesterday after the UK and EU’s negotiating teams have reached a Brexit withdrawal agreement. However, PM Johnson will face a deeply divided parliament on Saturday, where the opposition will try to delay the deal and another referendum. Further, the Northern Irish ally – the Democratic Unionist Party, has rejected Johnson’s Brexit agreement. This uncertainty will likely keep the Euro below the long-term bearish trend line 1.1130. On the other hand, the common currency would pick a strong bid if the DUP softens its stance ahead of tomorrow’s meeting.
The Single currency continued to surge yesterday until it hit a wall of resistance at 1.1130, which is the long-term bearish trend line. The bears must protect this level of resistance and push price back towards 1.11 and possibly 1.1062 (the rising medium-term trend line), if they want to remain in control in the big picture. The buyers however, need to gather momentum and take out 1.1130 to regain full possession by pushing price much higher.
Support: 1.11 / 1.1062
Resistance: 1.1130 / 1.1165