EUR/USD Analysis: bulls not willing to give up

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1118

Brexit headlines to keep coming and leading sentiment throughout the day.
Market players ignore macro data, but negative US figures could add to the ongoing rally.
EUR/USD bullish case firmer now, 1.1100 to attract buyers.

The EUR/USD pair has reached a daily high of 1.1139 on the heels of the announcement of a Brexit accord, to be discussed by the EU summit later today. The pair holds above the 1.1100 figure ahead of the US opening, despite the Pound gave back intraday gains on headlines indicating that the DUP is not supporting the deal, which all of the suddenly smashed chances of reaching an agreement today. More Brexit-related headlines are expected throughout the day, and would probably continue to lead currencies’ way.

Meanwhile, the EU released August Construction Output, which declined by 0.46% monthly basis, slightly better than the -0.80% expected. The annual advance resulted at 1.2%, much worse than the 2.6% forecasted. In the US, Housing Starts plummeted 9.4% in September, while Building Permits declined by 2.7%. Initial Jobless Claims for the week ended October 11 resulted in 214K, better than the 215K expected. Still pending of release are Industrial Production and Capacity Utilization for September.

EUR/USD short-term technical outlook

The EUR/USD pair is trading at its highest since last August, and the daily chart shows that the rally stalled at around the 100 DMA, quite a relevant sign for bulls. In the shorter-term, the pair retains its bullish potential, as it keeps advancing above all of its moving averages, while technical indicators head north within overbought readings. The pair has scope to extend its advance, particularly if upcoming US data misses the market’s expectations.

Support levels: 1.1100 1.1065 1.1030

Resistance levels: 1.1145 1.1180 1.1210

View Live chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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