The Euro rallied against the US Dollar on Monday, thus closing the session with a 55-pip gain. The most notable surge was apparent mid-session when a successful Brexit agreement gave additional bullish push.
The rate moved above the 200– and 100-hour SMAs and was therefore located near the 1.2360 area which has provided strong resistance during the previous weeks.
This breakout might be interpreted as a signal for a continuous advance north. However, the aforementioned resistance area could introduce some changes to this assumption and thus force the Euro lower down to the weekly PP and the 55-hour SMA circa 1.2310.
The main driver of volatility in this session should be G20 meetings. In case no surprises occur, the market is likely to consolidate prior to Fed statement tomorrow.
