The European Currency closed negatively last week, ending the three-week winning streak, which was the longest since January 2018. Moving forward, the Euro may find bids in the European session on trade optimism after the US negotiators on Friday said that talks with China have progressed very well and suggested that a deal was close. Furthermore, Trump called for Congress to pass the USCMA (US-Canada-Mexico) trade pact and said that China wants a trade deal. However, the upside could be capped by Brexit uncertainty. In addition, big moves may not be seen as the data calendar in Europe is light and traders may remain on the sidelines ahead of the Fed’s rate decision due on Oct. 30.
The Single currency bears were able to break below the October bullish trend line on Friday, potentially changing the trend and the market sentiment. The bulls will attempt to retest the broken trend line in today’s session but the bears will likely reject price and pull it down towards 1.1065. The bulls need to close above 1.1130 to regain full market control.
Support: 1.1065 / 1.1025
Resistance: 1.11 / 1.1130