The Euro broke above the medium-term trend around 1.1130 on Friday amid Brexit deal hopes. However, during the weekend, the UK parliament refused to support Brexit deal, which could dent the recent positive sentiment on this pair. It is also worth noting that the Single currency may face selling pressure if the September PPI prints below the estimate of -0.1%, reinforcing recession fears. The common currency could also take a hit if the EU retaliates to the US' decision to impose tariffs on $7.5 billion worth of European imports that were sanctioned by the WTO for the damage caused by improper subsidies to Airbus.
The Single currency continued to surge on Friday by breaking above the 1.1130 key resistance and reaching as high as 1.1171. The buyers, however, may face a loss in momentum as bullish sentiment starts to fade. 1.1165 is acting as a strong resistance so far which could push the price back towards 1.1130 for a retest. The bears need to break below 1.1130 to dent the sentiment further and extend their gains towards 1.11.
Support: 1.1130 / 1.11
Resistance: 1.1165 / 1.12