EUR traded higher against USD and closed at 1.1050
• EUR/USD buoyed by USD, T-yields weakness amid trade uncertainty.
• Bulls could face rejection at 100-DMA near 1.1095 in the short-term.
• ECB-speak, Buba monthly report and trade developments next of note.
EUR/USD is seen building on its last week’ s recovery above the 1.1050 level, having hit weekly highs at 1.1065 on mild US dollar weakness across the board. The bulls consolidate the latest uptick, awaiting fresh trading impetus heading into the European open.
On the EUR-side of the equation, the Eurozone October inflation came in as expected, up by 0.7% YoY and core CPI up by 1.1%, which supported the ongoing upbeat momentum in the common currency.
According to the Analysis, pair is expected to find support at 1.1049 and a fall through could take it to the next support level of 1.1048. The pair is expected to find its first resistance at 1.1055 and a rise through could take it to the next resistance level of 1.1056.
GBP traded higher against USD and closed at 1.2899.
• GBP/USD cheers increasing odds of Tory leadership.
• US-China trade hopes, military tension and Russian meddling in British politics keep the gains in check.
• UK PM’s speech, US Housing numbers and trade/Brexit headlines will be in focus.
According to the Analysis, pair is expected to find support at 1.2912 and a fall through could take it to the next support level of 1.2908. The pair is expected to find its first resistance at 1.2926, and a rise through could take it to the next resistance level of 1.2930.