EUR/BRL failed to breakout from a major resistance line

The pair failed to breakout from a major resistance line, sending the pair lower towards a key support line. Brazil is seeking a Mercosur-UK trade deal, which will be the same agreement with the European Union. This was after thethen second-largest economy in the EU withdraw from the bloc last January 31. Brazil is among the growing number of non-EU countries seeking ties with Britain. On the global ranking, Britain placed fifth on the largest economy in the world next to Germany, the EU’s economic powerhouse. The ECB will also hold several press briefings today, February 06, to discuss the current economic climate within the bloc. Analysts are worried that the press briefings will be negative with the recent slump in Germany’s Factory Orders report. On January 08, Germany posted a negative growth in factory orders which increases fears that Germany might enter a recession. With this is mind, the euro will fall in coming sessions.