The Euro recovers back up towards 1.1400 as improved risk appetite drives demand towards high beta currencies. Risk appetite between investors improved as China announced that next week it will be holding talks with the US to solve the trade dispute between the two nations. In addition to improved market sentiment, the Euro was also supported by a drop in the US Dollar following weak manufacturing data from the US, with the US ISM Manufacturing PMI falling towards 54.1 representing a 5.2% drop from the previous month’s 59.3 number. For today, the focus will be mainly on the NFP report from the US and the pair will be driven by the greenback’s reaction to the data released.
The Euro pushes higher towards the three major moving averages indicating indecision in the market. Depending on the results of the NFP report and the sentiment in the market, the pair will either break above the moving averages exposing the 1.1470 resistance level or break below the moving averages exposing the 1.1290 support level.
Support: 1.1349 / 1.1290
Resistance: 1.1422 / 1.1470