The EUR/USD pair is trading higher during the Asian session this morning around 1.1320, as the Euro is recovering from yesterday’s losses. Today, traders prefer risky assets against the US dollar (USD) against the background of recent positive reports on Brexit. Upcoming news from the Eurozone and the US may direct short-term market movements, while risk sentiment is intensifying.
Today, markets turned to risk after British lawmakers voted to postpone Brexit. Sentiments received additional support after US President Trump announced that negotiations with China were advancing, and Xinhua said that both countries had made significant progress in trade negotiations. The dynamics of the pair may be affected by data on consumer sentiment index of Michigan and industrial production in the United States.
EUR/USD Technical Analysis
The Euro started a solid upward move recently and broke the 1.1250 resistance level. The EUR/USD pair even broke the 1.1300 resistance level and traded with a positive bias.
The pair recently climbed above 1.1320 and the 50 hourly simple moving average before correcting lower. However, the downside was contained by the 1.1300 support level and a major bullish trend line with current support at 1.1305 on the hourly chart.
The pair recovered and cleared the 50% Fib retracement level of the last drop from the 1.1335 high to 1.1294 low. It is currently facing resistance near the 1.1325 level and it may correct lower.
On the downside, there are many supports near the 1.1300 level and the 50 hourly SMA. As long as there is no close below 1.1300, the pair is likely to bounce back and trade above 1.1330 and 1.1350.