- Euro remains bid after news that European leaders have reached an agreement on migration.
- Reuters news stated EU leaders finally reached an agreement on the EU migration deal, after the Italians blocked all the agreement overnight.
- An EU official was also reported as saying that the leaders agreed on new Mediterranean centers for migrants to be held in the EU on a voluntary basis.
- EUR/GBP is extending breakout at 200-DMA, tests highs above 38.2% Fib at 0.8882 to hit highest since Mar 13.
- Technical indicators are biased higher. Momentum studies also support upside.
- Break above 38.2% Fib at 0.8882 likely to see test of trendline resistance at 0.8915.
- On the flipside, retrace below 200-DMA could see test of 100-DMA at 0.8786. Violation there could drag the pair lower to test major trendline support at 0.8740.
Support levels - 0.8831 (5-DMA), 0.8819 (200-DMA), 0.88, 0.8786 (100-DMA)
Resistance levels - 0.8882 (38.2% Fib), 0.89, 0.8915 (major trendline)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-capped-at-200-DMA-08818-good-to-go-long-on-break-above-1391091) has hit all targets.
Recommendation: Book partial profits at highs. Hold for 0.89/ 0.8920.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 131.468 (Bullish), while Hourly GBP Spot Index was at -74.2355 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
