EURUSD Tests the 19-Year Old Trend Line

EURUSD has hit the major resistance in the context of the 19-year old ascending trend line. The price action touched the trend line at $1.1180 yesterday before rotating back lower to find the intraday support at $1.1140. The ECB is scheduled to meet on Thursday which is expected to be Mario Draghi’s last meeting as European Central Bank chief.

Special free webinar for traders: Price Action & Market Structures for 2019. Register now.

Besides, it has been announced that the EU Commission has sent a letter to Italy asking for clarification over its 2020 draft budget. It’s understood that Italy’s draft budget has planned for a rise in the structural deficit of 1.4% of its GDP, compared with 1.2% this year. On the other hand, the EU rules stipulate that structural deficit should be cut by 0.6% of GDP next year.

The never-ending budget talks between Brussels and Rome doesn’t seem to be holding back the EUR, which gained 0.41% against the buck yesterday. The latest move higher pushed the EURUSD to break the 100MA, which is now expected to work as a support.

On the upside, the EUR bulls have banged their head in opposition to the $1.1180 resistance, where the 19-year old ascending trend line sits. Since a break of the trend line occurred in August, the EURUSD already failed once to move back above the trend line. Once rejected in the last week of August, the EURUSD moved 280 pips lower.Download our latest quarterly market outlook for our longer-term trade ideas.

Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.