The EURUSD pair is one which has high volatile session ahead the Brexit vote. Pair trading in range bound but later gave up gains of previous week and trading near 1.1430.
Global market reacts negative to disappointing Chinese import export numbers. Investors are cautious ahead key Brexit approval vote in UK House of Commons. The outcome of Brexit vote today is expected to have strong impact on short term price action of both GBP and EURO in Forex market. In general opinion in market is that UK parliament will reject the vote today, unless the vote is approved against public expectations, pair can trade in same wide price range of 1.1300-1.1500.
On Economic front key data like French CPI, French GDP data & Euro area trade balance data will be released with BOE governor and ECB president commentary will be closely watched.
As per US economic calendar PPI and FOMC Member George Speak will have some impact but this already factored in prices as dollar index trading weak to sideways.
Technically the EUR/USD broke from the consolidation band on 4 hour chart and still has room for downside as on upside 1.1500-1.1520 act strong resistance. While recent fall in USD bring it to oversold zone and rise in us dollar expected ahead global market volatility.
If pair broker level of 1.1400 then it can slide to 1.1370-1.1300. Level of 1.1300 acts as strong support if it gets violated then price can slide further. Pair sustain above 1.1500 level can lead pair to upside till 1.1525 and above this 1.1600-1.1650 levels possible.
On daily chart pair trending in channel with lower support comes at 1.1315 and upside 1.1570. Now pair trading just near mean level. If price not able to hold.
Above 1.1400 it is first sign of major weakness and pair can slide to test strong support of 1.1300.
Brexit related news and volatile session can lead pair to break below this but sustain trading below this can give confirmation of further weakness.
On 4 hour chart momentum indicator like RSI still trending down and looking to test level of 30.Large bearish candles having long real body and small pullback in terms of small candles real body suggest lack of buying interest.
Major support and resistance levels as below: