The Italian referendum was held yesterday, the outcome turned out to be rejection, in line with polls. The Italian PM Renzi subsequently announced his resignation.
During the opening of the Asian session on Monday 5th December, the outcome of the referendum weighed on EUR/USD, fell to a year low of 1.0506.
Yet it was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500.
The price hit an intra-day high of 1.0729, broke the resistance level at 1.0700, as a result of the retracement of the dollar. Yet the selling pressure above the 1.0700 is heavier, be aware of a retracement.
The current trading pattern is likely to oscillate in the range between 1.0630 and 1.0720.
The resistance level is at 1.7000, followed by 1.0720.
The support line is at 1.0680, followed by 1.0650 and 1.0630.
This morning we saw the release of the Eurozone Markit Services and Composite PMI for November, were 53.8 and 53.9 respectively, both slightly lower than expectations of 54.1.
Keep an eye on the significant US Non-Manufacturing PMI, Markit Services and Composite PMI figures for November, to be released at 15:00 GMT today, as it will cause volatility for the dollar and EUR/USD.
The UK Supreme Court Hears Government Brexit Appeal from today.
GBP/USD has turned bullish, and been trading above the downside uptrend line support since October, due to the strengthening of the Sterling.
The expectations on the UK may not leave the EU, and the retracement of the dollar, helped GBP/USD maintain the recent bullish momentum.
The near term major resistance level at 1.2500 was broken on 1st December, now has turned into the near term major support line.
Both the 10 and 20 SMAs crossed over and head upwards, indicating an upwards trend. The bullish momentum is currently testing the next major resistance level at 1.2700.
The resistance level is at 1.2750, followed by 1.2800.
The support line is at 1.2700, followed by 1.2650 and 1.2600.
Keep an eye on the US Non-Manufacturing PMI, Markit Services and Composite PMI figures for November, to be released at 15:00 GMT today, as it will cause volatility for the dollar and GBP/USD.