The Euro dropped below 1.12 during yesterday’s session as the greenback continued to inch higher, adding to its post-Federal Reserve gains despite mixed US economic data. Most EU countries improved their Manufacturing PMI numbers, but Germany slightly missed expectations which tilted the market sentiment to the bears’ side. The recent lows near 1.11, stand exposed and could be put to test today if the US NFP data surprises to the upside. Traders will also keep an eye on EU CPI and US ISM Non-Manufacturing PMI data as both of them could have a major impact on the common currency.
The Euro broke and closed below 1.1185 support and the 50-day moving average, exposing 1.1115 as the next potential target for the bears. The overall sentiment remains bearish, however a break above 1.12 could give the common currency a boost higher towards 1.1230 and possibly 1.1260.
Support: 1.1115 / 1.1050
Resistance: 1.1185 / 1.1230 / 1.1260