EUR Technical Analysis: Quiet economic calendar ahead, Italy budget, US mid-term election and Brexit headlines to be eyed
- Euro extends another leg of weakness, losing ground against five major currencies
- Euro was the third worst performing major previous week, as it stored gains only against Swiss Franc and Japanese Yen among top seven major currencies
- No high rated German or Euro Zone economic data is due to be released in this week and confusion around Italy budget could play pivotal role to determine the Euro projectile.
- US mid term election and Brexit headlines to be eyed as market bias
EURO continues to perform weakly, more declines might have been in its store
For the second weeks in a row, Euro was the third worst performing major against 5 out of 7 top currencies. However, it lost ground almost every currency except Swiss Franc and Japanese Yen. Euro was up 0.52% against Swiss Franc and 1.01% against Japanese Yen. Euro risk appetite has been lifted considerably on the sparkle of Brexit front and US NFP data. Yet, Euro dropped only 0.33% against USD in the last week and further EUR/USD weakness might have been in the store.
Unfortunately, there is no important economic data due to be released in this week for German or Euro zone. That is why the Italy budget along with Brexit headlines could play a pivotal role to determine the projection of Euro. However, market sentiment also became neutralized ahead of US mid-term election.
So far, downward momentum is likely to appear for Euro and it is currently being traded at 1.1371 (05.11.2018, GMT. 12.30) and no high rated events are due in this week. Confusions are clouding regarding the Italy budget issue and no sigh of progress has been observed.
Positive Brexit headlines from the “Times Magazine”, still provides key supports for GBP and Eur has lost 1.24% against GBP in the last week. USD remains relatively stronger, as its NFP data and employment report shows. Euro key support still remains at 1.1310 with an increased risk appetite, however, resistance should be around the 1.1440 region.
A break below its potential support at 1.1310 could open up the window to fall under 1.12 region. Euro long term outlook may unveil an upwind run, yet its short-term outlook is eyeing a downward momentum.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]