The Euro started yesterday’s session under selling pressure amid headlines indicating that several ECB policy makers think that the bank’s economic projections are too optimistic as growth weakness in China and trade tensions persist. However, the April ZEW survey gave a slight hope of a possible rebound in German’s economy, as economic sentiment improved in the country and the Union. On the other hand, in the US, Industrial Production and Capacity Utilization Rate both missed market’s expectations. Market sentiment remained negative, despite the positive data from the EU and the negative from the US. This shows that traders want to see more economic improvements from the EU, in order to change their current negative sentiment towards the single currency. Today, the EU will release its February Trade Balance and March inflation data, though none of them is expected to have a major impact on price.
The Euro pulled back towards 1.1280 (S2) during yesterday’s session, where price found support and pushed it higher back above 1.13 (S1). Currently, the single currency is trading in a very tight range between 2 important pivot points. The bulls need to break above 1.1325 (R1) to confirm their dominance and the bears need a break below 1.1280 (S2) to regain control. The bias remains neutral as long as price is trading between those 2 points.
Support: 1.13 / 1.1280 / 1.1250
Resistance: 1.1325 / 1.1365 / 1.14