The Euro drops back below the 1.1400 mark following a recovery in the US Dollar. The US Dollar recovered on Monday after falling in the last two trading days of last week. Last week’s fall in the US Dollar was attributed to: investors pricing in an alteration in the Fed’s rate hike, and weak NFP data for November. Monday’s recovery in the greenback was credited to an increase in demand for safe haven assets and currencies as investors worry a global economic slowdown might take place. The Euro also dropped due to an internal political issue, which is the ongoing protests in France against the political agenda of French President Macron. For today, Euro traders need to focus on the movement of the US Dollar and any developments related to the political issues in France. Additionally, traders need to also monitor the result of the ZEW economic sentiment figure for the eurozone.
The Euro is currently trading around the three major moving averages as a reflection of indecision within investors about the future direction of the pair. Even though there is indecision in the market, the currency's bias is bearish as prices are trading slightly below the moving averages. A break below the 1.1350 will signal a confirmation in the bearish bias of the pair and drive prices down towards the next key support level at 1.1310. If prices rise above the three major moving averages and breaks above the 1.1426 resistance, then the bias of the pair will become bullish and the 1.1494 resistance level will be exposed
Support: 1.1350 / 1.1310
Resistance: 1.1426 / 1.1494