The Euro is inching higher on Thursday on low holiday volume. The single-currency is being mostly supported by a weaker U.S. Dollar and increased demand for riskier assets, but speculators are keeping an eye on Brexit developments.
According to reports, Britain and the European Union appeared on the cusp of striking a trade deal, raising hopes the United Kingdom can avoid a turbulent economic departure at the end of the year.
At 12:18 GMT, the EUR/USD is trading 1.2194, up 0.0011 or +0.09%.
The dollar was on the back foot in holiday-thinned trading as hopes for an agreement that would protect about $1 trillion in annual cross-channel trade from tariffs and quotas sapped demand for the safest assets, Reuters wrote.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.2059 will change the main trend to down. A move through 1.2273 will signal a resumption of the uptrend.
The minor trend is also up. A trade through 1.2130 will change the minor trend to down. This will also shift momentum to the downside.
The first minor range is 1.2273 to 1.2130. Its 50% level at 1.2202 is currently being straddled.
The second minor range is 1.2059 to 1.2273. Its 50% level at 1.2166 has provided support the past two sessions.
Daily Swing Chart Technical Forecast
We expect a light trade today because of the holiday. If there is a move in either direction, it will likely be determined by trader reaction to the 50% level at 1.2202.
A sustained move over 1.2202 will indicate the presence of buyers. This could create the groundwork for a retest of 1.2273 once volume returns to normal levels.
A sustained move under 1.2202 will signal the presence of weakness with 1.2166 the next target. If this level fails then look for the selling pressure to possibly increase.