EUR/USD: the recent recovery is on track [Video]

Richard Perry Independent Analyst

EUR/USD

There was a decisive positive reaction on EUR yesterday to the news that a Brexit deal was progressing. The inference for the outlook on EUR/USD is that the recent recovery is on track. The two week uptrend was tested yesterday but just held on and with the market again closing above the $1.1000/$1.1025 breakout band, the outlook continues to improve. However, there is still a degree of consolidation to recent candles, which are hanging on rather than pressuring overhead supply. The strength of the medium term momentum configuration leaves a positive bias, but the need for a positive candlestick is growing now. Resistance at $1.1060 needs to be broken to open the next phase of recovery to then challenge the key resistance at $1.1100. Support is now in place with yesterday’s low at $1.0990 and a breach would begin to seriously question near to medium term recovery prospects.

Author

Richard Perry

Independent Analyst

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.