The Single currency stalls around the 1.1600 level as U.S Dollar traders fail to agree on a direction for the U.S currency. Some greenback traders are selling the currency due to the escalating issues related to the trade war between China and U.S, others are buying the currency as they believe that the U.S economy is fundamentally strong given the series of positive economic releases, hawkish Federal Reserve, and higher U.S treasury yields. For today, the U.S PPI is expected to be released and a positive figure might trigger investors to buy the greenback and lead to a drop in the Euro.
The Euro wasn't able to break above the 1.16480 resistance level and currently looks set to drop after continuously failing to rise above the 50-period moving average. In addition to that, the pair retraced towards the 0.382 Fibonacci retracement and rejected it, signaling a continuation in the downtrend. Most recently, the pair broke below the 1.16161 support level paving the way for a drop towards 1.15495.
Support: 1.16161 1.15495
Resistance: 1.16480 1.16795