Euro dipped below the key 100-DMA late last week and trades unbiased on Monday, seeking a direction amid a lack of fresh catalysts. The bulls are now defending the 1.1450 level that is being exposed to a break after a slide below the 1.15 handle.
The pair alternates gains with losses after failed attempts to challenge the 1.1480 area earlier in the day. the dismal trade figures from China that pointed to a huge decline in exports and imports in December, prompted the safe-haven demand to return to the markets which in turn played into dollar’s hands. Amid lack of economic reports, traders will likely rely on technical signals in the short term which point to a limited upside potential due to a strong resistance of 1.15 on the way north.
The lingering uncertainty surrounding Brexit ahead of tomorrow’s crucial parliamentary vote adds to the negative pressure on the common currency, while the rising concerns over the slowing growth in Europe caps the euro’s bullish potential further.