The Euro dropped as ECB’s Mario Draghi warned of possible slowdown in the euro zone’s growth in the next two years. Draghi pointed out that the ECB’s Real GDP estimate has dropped from 2.0% to 1.9% in 2019. According to Draghi, the expectation of a slowdown is mainly attributed to growing trade tensions, slowdown in global economic activity, and rising uncertainty over growth in investments (this is caused by high asset prices). In addition to the negative remarks from Draghi, the Euro faced significant downward pressure from the US Dollar as the Federal Reserve continued to sound hawkish in its post- FOMC statement. For today, investors will continue to digest the negative ECB remarks and the hawkish US Federal Reserve while also monitoring the release of the US PPI figure which may further pressure the Euro from the greenback’s side.
The Euro slides below the 13-period moving average and the 50-period moving average as the pair's momentum returns to being bearish. Prices are currently approaching this years lows and a break below the 1.1299 level will signal a drop towards the 1.1250 support level.
Support: 1.1299 / 1.1250
Resistance: 1.1347 / 1.1390