Mark Wogan: Turnaround Tuesday?

Good morning traders.

No push up yesterday in our benighted pair although we did get a decent trade short from 1.1250.

The 1.12 big fig held overnight but poor EZ PMIs and a miss on CPI combined with a beat on US ISM manufacturing data did nothing to provide support.  It does look like we are heading for a retest of the years lows at @ 1.1180 before any chance of a push up although we are in squeeze territory here so need to exercise a degree of caution.

There is nothing out of the eurozone today re data while we have core durables from the US this afternoon.

We will however have a raft of comment regarding the unfolding tragedy that is Brexit. Last night the UK Parliament voted for what it did want rather than what it did not (i.e. Mays deal) and again came up with no agreement or consensus. It seems the UK is unable to reach a decision that is capable of being backed by sufficient MP´s to pass it.

A version of a customs union came closest to being agreed upon which would ease pressure on european trade concerns if it is eventually chosen as the preferred option. This would be supportive for the euro but we are still some distance from any agreement.

The USDx continues its march higher but we are nearing the 97.70 ish level which is a major swing high and likely to halt its progress in the near term.

The Daily Chart

There is nothing to add to the comments I made yesterday on the higher time frame chart. Technically it looks vulnerable to the downside before any move up.

The Hour Chart

Levels and zones as per. Main S & R are indicated by zones S1 and R1 and we have the 1.12 and 1.1280 levels providing possible trade opportunities as todays pa unfolds.

Have a good one:) .