EURUSD adds 0.47% at 1.1056 after positive headlines over Brexit. Michel Barnier has gotten the green light from EU27 member states to enter into “intense” – “tunnel” negotiations with the UK. The ECB, in its last policy meeting, cut the Deposit Rates by 10 bp to -0.50% and unveiled another round of debt purchases. Improved sentiment over the trade negotiations between officials from China and the USA in Washington also increase investors risk appetite.
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EURUSD Support and Resistance
EURUSD price trades at three-week highs; on the technical side EURUSD made an impressive rebound from two-year lows at 1.0878 up to 1.1062 as the momentum now looks neutral to bullish as the pair today breached above the 50-day moving average. The common currency managed today to break out convincingly of the descending channel which formed since June. On the upside where traders shift their attention now, immediate resistance stands at 1.1062 today’s high, a break above can lead prices up to 200-day moving average at 1.1141. Long positions can sit comfortably as long as the pair trades above the descending channel.
On the downside important support now stands at 1.10 daily low, a break below will encourage more bears to join the action and drive the price action down to 1.0903 the low from October 2nd. Next strong support stands at two-year lows at 1.0878. This is the next target that could be attained on a convincing downside break of the 1.0903 critical support line.