The Euro bulls remained resilient on Friday despite a much better US Core Durable Goods numbers and Michigan Consumer Sentiment data. However, the odds of dropping to new lows remain much greater. Today’s market sentiment will mainly be shaped by Germany’s economic data. Starting with German Retail Sales in the morning, continuing with the labor data where is expected to remain unchanged at 5% in September. Later on, the German CPI is expected to show the cost of living ticked up by 1.9% in September, having dropped 0.2% in August. The common currency will likely print fresh multi-year lows in today’s session if the German retail sales and jobs data disappoint expectations, validating the ECB's recent decision to restart bond purchases.
The Single currency bounced on Friday from the multi-year lows; however, the bearish domination remains intact for now. The buyers currently found support at 1.0930, attempting to retest the 1.0966 resistance level. That is where the bears will likely be waiting to take back control once again by pushing price to the yearly low 1.0904. However, if the bulls were able to break above 1.0966, then the short-term gains could extend towards 1.10.
Support: 1.0930 / 1.0904
Resistance: 1.0966 / 1.10