- UK PM Johnson’s programme motion rejected at Parliament.
- Pound drops across the board weighs on EUR/USD that faces increasing bearish pressure.
The EUR/USD pair dropped to 1.1119 after the second vote at the United Kingdom Parliament, hitting fresh daily lows. It then bounced back above 1.1125 and as of writing trades at 1.1130, facing bearish pressure but holding on top of a relevant intraday support.
Volatility across the forex market rose amid key Brexit votes at the UK Parliament. The government’s deal got approved but the timetable was rejected. Prime Minister Boris Johnson said the first consequence was that the government must accelerate no-deal preparations.
The Pound fell across the board after the voting, with the GBP/USD hitting fresh lows under 1.2900. The slide of Cable weighed on the EUR/USD pair. The Greenback and the Yen benefited so far and continue to be the top performers of the day.
Levels to watch
If EUR/USD breaks above 1.1155, the Euro will likely gain momentum to rise further toward the next resistance seen around 1.1170. A close above 1.1170 could signal that the current correction from monthly highs is over.
At the moment, the bias point to the downside. Below 1.1120 attention would turn to 1.1100 and below the next support might be seen at 1.1085 followed by the 1.1060 area.
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