© O Financista. EUR/USD weakens ahead of the vote on the Brexit
Investing.com – The Euro-Dollar pair has displayed an evolution rather uncertain yesterday, but the bears seem to take by the hand this morning.
Note that the pair EUR/USD has evolved to be confined in a narrow range 1.1450-1.1480 yesterday, before timidly testing the terminal high of the range during the night, to finally quickly be returned under this threshold, and in the range.
This morning, the bearish pressure immediate, therefore, seems to be increasing, the pair is back below its moving average of 200 hours (1.1459) for the first time in ten days, with a low daily at 1.1430 for the moment.
The break below the moving average 200 hours and under the threshold of 1.1450 is a significant bearish signal, and the attention of investors may now turn to the next areas of support to 1.1420, 1.14 and 1.1340-50 in a first time.
The increase, in addition to 1.1450, the resistance of 1.1480, the moving average 100 hours at 1.1498 and the psychological threshold of 1.15 form the first major obstacle, before 1.1540, 1.1570 and 1.16.
In terms of timeliness, potentially influential of the day, it should be noted that the Brexit will be on the front of the stage, with the vote of the agreement between Theresa May and the EU that will be voted on today. The evolution of the GBP/USD in the face of this crucial vote could affect the EUR/USD correlation.
On the side of the economic calendar, traders will be watching the european trade balance at 11 am, and then the PPI in US at 14: 30, before several speeches by central bankers, with Draghi (ECB) at 16h, Kashkari (the Fed) at 17: 30, and George and Kaplan’s (Fed) to 19h.
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