Good morning traders.
Short comment today – it was a long day yesterday waiting for the UK cabinet decision on Brexit!
Yesterday was a tricky day to trade given the headline risk re the ´Brexit deal´ etc. However our support and resistance (S & R) levels still gave us a good guide to the price action.
Now that we have some form of deal in the offing will it be positive for our pair? Who knows is the first thing that springs into my mind. While we appear to be moving forward with Brexit which should be positive for the euro, UK parliamentary machinations, possible cabinet resignations and leadership challenges remain as significant risks in the road ahead.
Best to stick to the levels and try not to think about it!
The Daily Chart
We closed just above the 1.13 level again yesterday which is the second day back over 1.13 which suggests to me, barring the continued political risks of Brexit and Italian debt, a further run up the charts. 1.14 is the next daily level of note.
The Hourly Chart
To the downside we have the obvious support level at the big fig 1.13. If we push lower watch the 1.1265 and 1.1250 levels.
On the upside resistance comes in at 1.1350 which is also roughly in line with the 50% Fib and then apart from some minor possible turning points we have almost a free path up to 1.14.
Have a good day.