The Euro drops to 1.1350 as the ECB lowers growth forecasts for the Eurozone. ECB’s Draghi said that growth in Europe for 2018 is expected to print at 1.9%, down from September’s forecast of 2.0%. Many traders will notice that the drop in the Euro was not that significant which makes sense given that even though the ECB’s growth forecasts have been trimmed, the panel made it clear that they are still on track to end the Quantitative Easing program in December and still plan to start hiking rates next summer. For today, Euro traders need to monitor the PMI figures released from both the Eurozone and the US, and they also need to keep a look out for any developments relating to Brexit and Italy’s budget plan especially that an EU summit is currently being held.
Momentum seems to be leaning towards the bearish side as prices trade below all the three major moving averages. Most recently, prices broke below the 13-period moving average signaling a drop towards the 1.1305 support level. Traders need to expect prices to fall sharply when the 13-period moving average crosses below the 50-period moving average.
Support: 1.1351 / 1.1305
Resistance: 1.1392 / 1.1426