The Euro attempted but failed to close above 1.13 during yesterday’s session as the bearish sentiment is still weighing on this pair after concerns of several ECB officials that the bank’s recent economic projections are too optimistic. These concerns will be reinforced if today’s German and EU Manufacturing PMI miss market’s expectations. Also, traders will be keeping an eye on the US economic releases as it will unveil its March Retail Sales and the Philadelphia Fed Manufacturing Index. Positive data from the US will boost the greenback adding more pressure on the single currency.
The Euro found resistance at 1.1325 (R1) keeping price consolidating in the same range. The sentiment remains neutral as long as price is trading between 1.1325 (R1) and 1.1280 (S2). A clear break above 1.1325 (R1) could continue the recent bullish trend. However, a break below 1.1280 (S2) could establish a new short-term bearish trend in this market.
Support: 1.13 / 1.1280 / 1.1250
Resistance: 1.1325 / 1.1365 / 1.14