Euro records broad based gains in Asian session today and is trading as the second strongest for today. It’s indeed the strongest one for the week so far. We not seeing any apparent fundamental reason of the Euro’s own for the rally. But the EUR/USD’s reject from 1.1507 support thanks to Dollar’s pullback is a factor. Sterling’s persistent weakness in worries on no-deal Brexit is another favorable factor for Euro.
Technically, EUR/USD’s break of 1.1610 minor resistance should indicate near term bottoming at 1.1529, ahead of 1.1507 key support. The consolidation pattern from 1.1509 is starting another rising leg. EUR/USD would be targeting 1.1745 resistance next as the pattern extends.
EUR/GBP also finally breaks 0.8967 key cluster resistance level. The upper channel resistance might be an obstacle for the near term. But we’d expect rise from 0.8620 to extend to 61.8% retracement of 0.9305 to 0.8620 at 0.9043. The rise in EUR/GBP would help support Euro elsewhere.
