The common currency closed below 1.12 yesterday as the Dollar gained across the board on the back of a strong US data, lowering the odds of a possible Fed rate cut by December. Moreover, market sentiment remains bearish on the single currency as the German 10-year bond is still in the negative territory, adding more pressure on the Euro. Today’s leading indicator would be the Eurozone inflation reading for April, a better than expected CPI numbers could revive the Euro in the short-term and boost it to the upside.
The Euro bears regained control yesterday as they broke below the 1.12 key support level. The short-term trend has shifted again to the bears’ side, as the sellers are now looking to retest the yearly low 1.1110. Price needs to break below 1.1167 to confirm further weakness towards 1.1140 initially and then ultimately 1.1110. The bulls however, need to break above 1.12 to regain control.
Support: 1.1167 / 1.1140
Resistance: 1.1180 / 1.1215