The Euro dropped below 1.1350 level, as the bears attempt to take back control after the US and China reached a trade truce and eased trade war fears. During the weekend, President Trump met President Xi at the G-20 summit and they both agreed to restart trade talks and avoid escalation in tariff war, which fueled a broad-based US Dollar strength in the Asian session. Adding to the weight on the single currency, the EU leaders failed to reach a consensus over who should get the EU’s top jobs, including a successor to Commission Chief Jean-Claude Junker. However, during the weekend, the French President Macron said the new Chief for the ECB could be decided later this week, giving market participants a new main event to look forward to. Today, traders will be focusing on the crucial Manufacturing PMI numbers coming out from Germany, the Euro-zone, and the US.
The Euro bears broke below 1.1350 and the 50-day moving average, attempting to retest 1.13 as their next target. However, the bulls are still in control in the big picture as the recent trend is still intact. A break below 1.13 will invalidate the recent bullish trend and the bears will take back control.
Support: 1.13 / 1.1250
Resistance: 1.1350 / 1.1385