Wednesday, October 23, 2019



Fundamental Highlights

The Euro pulled back yesterday as the UK Parliament rejected Brexit timetable and in turn dented the market sentiment. Focus today is on the German 10-year Bund Auction after dropping four basis points yesterday. The Single currency could suffer a deeper drop, if the German 10-year bond yield extends yesterday's four basis point drop to -0.38%. In addition, the US Dollar may find support, adding to the bearish pressures on the European currency, courtesy of the risk-off mood in the equity markets.

Technical Analysis

The Single currency bears broke below the 1.1130 key level as well as the short-term bullish trend, eyeing next the medium-term trend and the 50-day moving average for a retest. The bulls need to find a strong bid around those levels if they want to remain in control.

Support: 1.11 / 1.1065
Resistance: 1.1130 / 1.1165

Chart (H4)