The Euro continued to appreciate against the Dollar, as expected. The reason behind the surge was related not only to combined support formed by the 55-, 100- and 200-hour SMAs together with the weekly PP, which the pair used as a trampoline, but also to the fact that Catalonia signed but immediately suspended declaration of independence to bargain with Madrid. Accordingly, in the first half of the day the currency rate is expected to test a resistance located near the 1.1830 mark. Historically, this area proved to a significant barrier for the pair. From this perspective, there is a chance that it would halt the soar and make a short term rebound. In the meantime, there is a need to take into account an effect from the FOMC meeting, which is likely to strengthen the Dollar.
