The Single currency continues to trade between the 1.13182 - 1.14110 range as the market remains indecisive on the future direction of the pair. Investors await any new developments in regards to the issues faced in Turkey as the recent rise in the Turkish Lira does not seem to have recovered confidence on the state of the Turkish investments made by European banks. The Turkish finance minister pledged to support local bank and cut public spending in order to protect the country from defaulting on its debt but there is still a major risk that Turkey's spat with the U.S will intensify and lead to another sell off in the Lira. Investors also await any new developments related to the trade negotiations between the U.S and China, easing conditions will spur growth in the Chinese economy and thus lead to a rise in the demand for European goods. For today, investors will focus on the Eurozone's CPI figure release and the pair will break in either direction of the range depending on the result.
The Common currency is in a range between 1.13182 and 1.14110. For now two scenarios are possible, the Euro either breaks above 1.14110 exposing the 50-period moving average at 1.14545, or the currency breaks below the 1.13182 at the second attempt and the pair drops towards 1.12433.
Support: 1.13182 1.12433
Resistance: 1.14110 1.14545