EURUSD gives up 0.12% at 1.1011 as the optimism around the phase one trade deal between US and China fade away. On the other hand, confusing headlines from the Brexit front today increased volatility in the forex market. EU’s Michel Barnier said that negotiations are currently intense and it is still possible to reach a Brexit deal this week. The economic data came in better today as the Germany ZEW Survey Current Situation came in at -25.3, topping forecasts of -26 in October, while the ZEW Survey for the Economic Sentiment came in at -22.8 above forecasts of -27 in October.
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EURUSD Technical Analysis
EURUSD failed for the third day in a row to break above the 50-day moving average, and that helped some sellers to step in and drive the price down to daily lows. On the technical side EURUSD made an impressive rebound from two-year lows at 1.0878 up to 1.1062 but failed to keep the positive momentum despite the support that risk assets found amid better news. On the downside where traders shift their attention now, important support stands at 1.1006 daily low, a break below will encourage more sellers to join the action and drive the price down to 1.0972 the low from October 10. 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 1.0972 critical support line. On the upside, immediate resistance stands at 1.1045 today’s high, a break above can lead prices up to 200-day moving average at 1.1138. Long positions can sit comfortably as long as the pair trades above the descending channel and above 1.10.