Aside from the Pound[5], G10 FX has been unsurprisingly muted as markets wind down for the Christmas period. All eyes remain on an official announcement of a Brexit deal[6], which is within the next few hours. In light of the risk-on catalyst, safe-haven currencies (JPY[7], CHF[8]) are on the backfoot against high-beta FX.
G10 FX Intra-day Performance
EUR/USD | Narrow Range Maintained
The pair continues to hover around the 1.22 mark with recent gains underpinned by the wave of Brexit optimism. However, an offsetting factor for a push higher in the Euro is likely due to the pullback in EUR/GBP which has hit fresh 3-week lows. Topside challenges remain at the high 1.22s, while key support is situated at 1.2120-30. That said, EUR/USD is expected to remain in a relatively narrow 1.2160-1.2215 range.
Pivot | 1.2186
Support | 1.2151, 1.2118, 1.2083
Resistance | 1.2219, 1.2254, 1.2288
EUR/GBP | 200DMA Breached, November Lows in Focus
The cross has made a break below the psychological 0.90 handle and 200DMA (0.8983), raising scope for a move towards the November lows situated at 0.8860 in the short-run. However, given seasonal factors, liquidity remains scarce, thus the cross is prone to choppy price action.
Moving Average (MA) Explained for Traders[9]
Pivot | 0.9046
Support | 0.8982, 0.8936, 0.8872
Resistance | 0.9092, 0.9156, 0.9219
EUR/GBP Chart: Daily Time Frame
Source: Refinitiv
DailyFX[10] provides forex news and technical analysis on the trends that influence the global currency markets.
