The Euro bounces off the 1.1315 support level as the US Dollar started to weaken. Given that investors are worried about a possible slowdown in the global economy, they started pricing in the possibility of the US Federal Reserve taking a break in terms of hiking rates. The pricing in of a break in rate hikes was reflected in the drop in US Treasury Yields with the 10-Year Treasury falling from the 3.00% mark to 2.85%. Additionally, the Euro was supported by easing tensions between the EU and the Italian government after the Italian Prime Minister promised to alter his government’s controversial budget plan for 2019. For today, the focus will be mainly on the results of the NFP report which will drive the pair from the US Dollar’s side.
The Euro ranges within the three major moving averages as investor await the release of the US NFP report. Depending on the results of the report, the pair will either break below the 13 and 50-period moving averages paving the way for a drop towards 1.1310, or the pair will break above the 1.1426 resistance paving the way for a rise towards 1.1494.
Support: 1.1352 / 1.1310
Resistance: 1.1426 / 1.1494