The Euro edged lower yesterday as German Factory Orders declined 4.2% MoM and 8.4% YoY, much worse than anticipated, denting Germany’s economic state even further. The Minutes of the latest ECB meeting didn’t offer something new as expected. The US, on the other hand, released Initial Jobless Claims printing 202K, its lowest in near five decades, giving a small boost for the US Dollar. Today, German Industrial Production numbers will be released, but traders will mainly be focusing on the US NFP report for any clarity of the next possible price trajectory. A better than expected numbers will put more pressure on the FED to continue hiking rates, whereas a worse than expected numbers will encourage them to cut it.
The Euro traded in a tight 50 pips range yesterday, breaking below the 1.1225 support level. But the break was short-lived as the bulls took the price back above it. Currently its resting just below the 50-day moving average (blue line) 1.1237. Traders are waiting for a break to either above 1.1250 (R1) or below 1.12 (S1) to confirm the next possible destination.
Support: 1.1225 / 1.12 / 1.1176
Resistance: 1.1250 / 1.1280 / 1.13