The Euro recovered yesterday after an upbeat macroeconomic data releases. Eurozone Services PMI beat market forecast, additionally Sentix Investor Confidence rebounded in May, which hints that fears of a possible recession are receding in the background. On the other hand, escalating geopolitical tensions amid fears of the US and China trade dispute weighed on the market sentiment and kept the pair subdued. Today, traders will be waiting for the Factory Orders data from Germany, but the main focus would be on any potential development in the US – China trade deal.
The Euro found support at 1.1185 (S1) and bounced above 1.12 yesterday, possibly heading towards 1.1230 (R1). The bulls will be facing a major resistance level around 1.1260 (R2) if price reaches there. If the buyers will be able to break above that area, the short-sellers will start to cover which automatically pushes the price higher. On the other hand, the bears will try to retest the yearly low, by possibly breaking below it, in order to resume this downtrend.
Support: 1.1185 / 1.1115
Resistance: 1.1230 / 1.1260