The Euro closed slightly negative yesterday as the European Commission revised down its expectation for the GDP growth to 1.2% in 2019 in the euro area and to 1.5% in 2020. Furthermore, Germany’s Manufacturing PMI fell deeper into contraction territory in February and March, putting additional pressure on the single currency. However, the Dollar gains were capped by trade concerns, forcing traders to flee towards safe-haven currencies such as the Yen. Today, Germany will release its Industrial Production data, but the main focus will be ECB President Draghi’s speech as market participants will try to dissect any new updates regarding the monetary policy.
The Euro bears attempted to break below 1.1185 (S1) and the 50-day moving average (blue line) but the bulls came back and took the price above 1.12. The buyers need to overcome the 1.1230 (R1) and 1.1260 (R2) resistance levels to potentially put an end to this downtrend. The sellers on the other hand, will attempt to retest the yearly low 1.1115 to confirm the bearish trend continuation.
Support: 1.1185 / 1.1115
Resistance: 1.1230 / 1.1260