May&Corbyn Meet, EUR/USD Rallies

During Tuesday’s mid-U.S. session, U.K. PM Theresa May called an emergency Brexit meeting with opposition leader Jeremy Corbyn. That 2-hour engagement concluded a short while ago. Corbyn is quoted as saying the “PM meeting went very well” and he expects “further talks with the PM soon.” So, at this juncture, the situation remains fluid. If nothing else, the EUR/USD views the May/Corbyn sit-down as positive, with the Euro posting gains vs the Greenback.

May & Corbyn Meet, The EUR/USD Pushes North Of 1.1225

Following a miserable six-session losing streak, the EUR/USD is positioned to close the forex trading day in the green. Rates are up more than 35 ticks and several topside resistance levels are coming into view.

Here are a few levels to watch as we roll into the late-week:

• Resistance(1): 38% Current Wave, 1.1284
• Resistance(2): Daily SMA, 1.1291
• Resistance(3): Bollinger MP, 1.1294

Bottom Line: As long as the Swing Low (1.1183) remains valid, I will have sell orders queued up from 1.1273. With an initial stop at 1.1306, this trade produces 25 pips on a slightly sub-1:1 risk vs reward management plan.

From a fundamental perspective, there are two market drivers to be released in the next 48 hours. During the coming U.S. overnight, the ECB Monetary Policy Meeting Accounts are due out. Friday brings release of U.S. Nonfarm Payrolls for March. Assuming more Brexit chaos for the near future, the EUR/USD is likely to see heavy action ahead of the weekend break.