Forex Marketz Daily Forex News – Fully Markets Update
Looking at the world’s most liquid currency exchange rate on the above daily MT 4 chart, the euro currency (EUR) is starting to consolidate as it trades around 1.2110 against the U.S. dollar.
The EUR/USD Forex market was rejected by the upside barrier at 1.2170 yet once again. Traders are becoming a bit uncertain about taking large positions with the euro as both the United Kingdom and the European Union struggle to reach a free trade agreement before Brexit comes to an end on 31 December. That is when the United Kingdom will finally divorce from the euro area.
Overnight, the British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen announced that PM Johnson will travel to Brussels, in the immediate future, to try and hammer out a trade agreement before the looming deadline.
This is the last attempt for the both sides to reach an agreement. As of right now the timing of the trip and when the meeting will occur has yet to be confirmed.
British Prime Minister Boris Johnson is not likely to time his trip with Thursday’s European Union Summit. The EU summit takes place Thursday and Friday this week.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD price action chart, the euro inched lower as fatigued set in at this price altitude. There was the candlestick formation with long upper wicks next to two adjacent candlesticks. The 14 day relative strength index (RSI) which is well above fifty (50) and in the overbought territory.
The 14 day MACD histogram is starting to signal lower highs. This is an indication of a price trend reversal as the euro could be running out of some steam.
With that said the EUR/USD currency exchange rate seems ready to challenge the former technical resistance level now turned downside support lining up at the September high price point.
This level is at 1.2010/11. A daily close above last Friday’s high price point at 1.2178 is needed for a potential bullish continuation in this benchmark Forex market.
