The Euro drops to the 1.1550 level following Friday's satisfactory and positive NFP report from the U.S. The Common currency dropped amid pressure from the U.S Dollar as the U.S Non-farm payrolls printed better than expected, the U.S unemployment rate held steady, and U.S wage growth beat consensus. For today, the market will continue to digest the positive economic data but will also keep an eye on any developments in the trade tensions between the U.S and China, the state of emerging market economies, and most importantly, the political scene in Italy.
The pair was able to break below the 200-period moving average following the positive U.S data, this break represents a shift in the long term trend of the pair. As sentiment remains on the positive side of the U.S dollar, the pair will likely continue to drop lower. A break below 1.15187 will expose the next key support level at 1.14620.
Support: 1.15187 1.14620
Resistance: 1.15838 1.16605