- EUR/USD records monthly highs near 1.1140.
- The Dollar sheds further ground post-Brexit deal.
- UK-EU clinched a Brexit deal. The DUP still disagrees it seems.
The persistent offered tone around the Greenback is pushing EUR/USD to fresh monthly highs in the vicinity of 1.1140.
EUR/USD up after Brexit deal
The pair climbed to fresh 2-month tops near 1.1140 after UK and EU officials reached a deal in the Brexit negotiations.
The news of a Brexit deal has intensified the upbeat sentiment in he risk-associated assets, all in detriment of the buck, which is navigating the area of multi-week lows around 97.60 when tracked by the US Dollar Index (DXY).
The pair, in the meantime, has managed to return to levels last seen in late August well above the 1.11 handle. It is worth recalling that the sharp rebound from recent 2019 lows at 1.0879 (October 1st) was exclusively on the back of USD-weakness and optimism over a Brexit deal.
What to look for around EUR
The upside momentum in the pair has extended further north of the critical 55-day SMA and it is now targeting the September’s peak beyond 1.11 the figure. The positive 3-week streak in spot has been sponsored by the persistent offered bias in the Dollar. However, the outlook in Euroland continues to deteriorate and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the longer run. On another front, the Brexit process and its impact on the risk-associated complex is also affecting the price action around the pair while sporadic rumours of German fiscal stimulus also add volatility to the market now and then.
EUR/USD levels to watch
At the moment, the pair is gaining 0.46% at 1.1122 and faces the next barrier at 1.1139 (monthly high Oct.17) seconded by 1.1163 (high Aug.26) and finally 1.1186 (61.8% Fibo of the 2017-2018 rally). On the flip side, a break below 1.1049 (21-day SMA) would target 1.0988 (21-day SMA) en route to 1.0879 (2019 low Oct.1).
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