The Euro closed at 1.1220 yesterday after reaching as high as 1.1306 in the first half of the session. The catalyst that sent the common currency to the mentioned high was the combination of Fed Powell’s comments hinting at a possible rate cut and US ADP survey showing that the private sector is slowing after adding just 27K new jobs in May, way below the 180K expected. However, the Dollar turned north in the second half of the session, after the release of a much better ISM Non-Manufacturing PMI, putting Chair Powell’s possible rate cut on hold for now. Today, ECB’s monetary policy statement could invalidate the recent bullish sentiment on this pair, taking price back below 1.12 if the policy makers couldn’t satisfy the single currency bulls.
The Euro temporarily tested 1.13 during yesterday’s session after price collapsed back towards 1.1220. If the bulls couldn’t hold 1.1220 then the single currency will likely retest 1.12 today and maybe even break below it. However, with enough momentum, the buyers could regain control and possibly retest yesterday’s high 1.1306.
Support: 1.1220 / 1.12
Resistance: 1.1262 / 1.13