The Euro rallied a bit during yesterday’s session but eventually gave back its gains showing signs of weakness, as traders preferred the greenback over the shared currency amid lack of macroeconomics data. Today’s German Economic Sentiment figures could confirm whether this recent bullish trend has further room to the upside or not. A weaker than expected data could increase concerns of a deeper economic slowdown in the Eurozone's biggest economy, pushing the Euro below 1.13 and potentially even break the uptrend. On the other hand, the US will release the March Industrial Production figures and later on Fed’s Kaplan will be giving an update about the state of the economy but none of them will have a major impact on price.
The Euro attempted to break above 1.1325 (R1) but the bears didn’t want to lose the fight easily. The single currency remains consolidating between 1.1325 (R1) and 1.13 (S1), waiting for a break to either side. A break above 1.1325 (R1) would be critical as it could signal a beginning of a new wave of buying taking price higher towards 1.1365 (R2) and potentially to 1.14 (R3). But if the bulls lose momentum again, then a breakdown below 1.13(S1) would be a likely scenario.
Support: 1.13 / 1.1280 / 1.1250
Resistance: 1.1325 / 1.1365 / 1.14