The Euro stabilizes as investors await developments in the trade war between the U.S and China and news regarding the performance of emerging market economies. Sentiment remains bearish for the Euro as investors are projected to continue to demand the safe haven greenback due to political and economic uncertainty from different parts of the world. For today, eyes will shift towards the ISM Manufacturing PMI number from the U.S setting the stage for Friday's anticipated NFP report. A positive reading will add to the series of upbeat U.S data setting the stage for an optimistic future for the U.S economy and its respective currency.
The bearish momentum is confirmed following the most recent break of the 200-period moving average. Yesterday, the pair broke the 13 and 50-period moving averages but the bearish momentum was not confirmed until today's 200-period break. The break below the long term moving average will set up the stage for a possible drop towards the next key support level at 1.15430.
Support: 1.15833 1.15430
Resistance: 1.16428 1.17528