The European currency fell for the fifth straight trading session yesterday despite the uptick in the German bond yields. The German 10-year bond yield rose more than six basis points to -0.64% yesterday on reports of willingness to increase fiscal spending in order to support the struggling economy. Additionally, the Single currency bulls attempted to break above 1.11 multiple times during the session following President Trump’s tweet calling for a rate cut once again, but a lower than expected EU inflation data kept the common currency under pressure. Today, the weakness will most likely drag on, as bearish sentiment continues due to lack of macroeconomic data.
The Euro bulls attempted to break above 1.1110 yesterday, but the bears were much stronger as price rolled over and closed just above the recent lows. Today, the sellers will likely continue their domination targeting the yearly low 1.1027, as long as price remains weak and below 1.1110. The buyers need to find enough momentum to break above 1.1110 to change this current bearish sentiment.
Support: 1.1027 / 1.0950
Resistance: 1.1110 / 1.1160