- Spot trades within the daily range around 1.1370.
- The greenback stays slightly bid in the 96.30/35 band.
- Markets’ attention stay on Brexit and May’s ‘Plan B’.
EUR/USD is navigating within a 30-pip range today, as volatility in the global markets remain thin due to the US holiday.
EUR/USD looks to risk trends, Brexit
The pair has come under renewed selling pressure after hitting fresh daily tops in the boundaries of 1.1390 during early trade.
Positive results from the Chinese docket earlier in the Asian trading session gave some fresh oxygen to the risk-associated complex, although those effects have somewhat died off during the European morning.
Looking ahead, investors’ attention will be on the UK, as PM Theresa May is expected to come up with a Brexit ‘Plan B’ later in the afternoon.
What to look for around EUR/USD
Last week’s decline in the pair has been on the back of renewed demand for the greenback and the dovish tilt from Draghi’s speech before the European Parliament. Furthermore, focus in the euro bloc should remain on the ongoing slowdown in the region, EU Parliamentary elections in May (populism could gain further presence), social unease in France (the ‘yellow-vest’ issue remains largely unresolved), omnipresence political effervescence in Italy and the likeliness that a technical recession in Germany in H2 2018.
EUR/USD levels to watch
At the moment, the pair is gaining 0.02% at 1.1364 and a breakout of 1.1421 (21-day SMA) would target 1.1442 (38.2% Fibo of the September-November drop) and finally 1.1461 (100-day SMA). On the flip side, the next support emerges at 1.1353 (low Jan.18) seconded by 1.1306 (2019 low Jan.3) and finally 1.1269 (monthly low Dec.14 2018).
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