The Euro drops further towards the 1.1310 mark after a disappointment in the Eurozone’s PMI figures for December. The EU’s Manufacturing PMI printed at 51.4 compared to the expected 51.9, while the Services PMI endured a greater disappointment by printing at 51.4 compared to the expected 53.5. The PMI figures disappointment comes after last Thursday’s EU growth forecast downgrade from the ECB. For today, traders will need to monitor the release of the EU’s CPI figures alongside any possible statement from the EU regarding Italy’s alteration of its budget plan for 2019.
Prices are currently ranging around a key support level between 1.1265 and 1.1320. Note that momentum is leaning towards the downside given that prices are trading below all the three major moving averages. Depending on the results of the EU CPI figure, prices will either bounce off the current support level and rise towards the 13-period moving average or prices will drop below the 1.1265 support exposing the next key level at 1.1200.
Support: 1.1265 / 1.1200
Resistance: 1.1326 / 1.1365