The Euro may suffer loss in momentum if the UK’s parliament does not agree to the Brexit timetable, possibly leading to a drop in the Single currency back below the key 1.1130 level. However, the drop could be temporary as the recent easing of US-China trade tensions could boost the market sentiment, which in turn could possibly keep the common currency afloat above 1.1130. Nonetheless, the upside will likely be limited as economic conditions in the EU are still underwhelming. Today, the economic calendar is empty on the EU side; however, the US will release the Existing Home Sales for September. If the data disappoints, it could lead to a short-term Dollar selloff boosting the European currency to retest yesterday’s lows.
The Single currency bulls attempted to break above 1.1165 but the bears pulled the price back towards 1.1139. The bullish momentum is currently on hold as the buyers and sellers are awaiting for further clarification. The bulls are waiting for a clear break above 1.1165 for further upside continuation and the bears are looking whether 1.1130 will hold or not.
Support: 1.1130 / 1.11
Resistance: 1.1165 / 1.12