EURUSD Stalls at 1.1059 and Retreats Back Below the 50-Day MA
EURUSD gives up 0.06% at 1.1026 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 Negotiator, Michel Barnier, told EU commissioners that he is optimistic about getting a Brexit deal with the UK by the end of the day. The economic data came mixed today as European Monetary Union Consumer Price Index (year over year) came in at 0.8%, below forecasts of 0.9% in September, the monthly Consumer Price Index reading came in at 0.2% in line with forecasts. European Monetary Union Trade Balance n.s.a. registered at €14.7B, below forecasts of €17.5B in August.
EURUSD made one step higher today reaching 1.1059 but as of writing the pair retreats at 1.1024. The pair failed for the fourth day in a row to break above the 50-day moving average at 1.1037, 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, important support stands at 1.1022 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 1.1059 today’s high, a break above can lead prices up to 170-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.