The Euro dropped below 1.10 yesterday after the German Manufacturing & Services PMI missed expectations by hitting a decade low, followed by EU’s weaker than expected Manufacturing & Services PMI data. The sentiment turned very bearish once again on the Single currency as it will likely drop towards the yearly low 1.0930s in today’s session, as the probability of today’s German IFO expectations index missing estimates is high. Which in turn would boost the German recession fears in the marketplace once again, leading to a possible deeper drop in the common currency. Additionally, traders will also keep an eye on the CB Consumer Confidence; any miss in expectations will temporarily neutralize the current bearish sentiment on this pair.
The Single currency broke below the 1.10 support as the bears are eyeing to retest the yearly low 1.0925 for the third time this month. If the sellers manage to keep price subdued below 1.10 then the probability of new intraday lows will be very high. However, if the bulls broke above 1.10, then a retest of the bearish trend line will be a likely scenario.
Support: 1.0968 / 1.0930
Resistance: 1.10 / 1.1065