The Euro breaks below 1.1510 as the U.S Dollar puts pressure on the Common currency. The greenback rallied on Wednesday after the FOMC meeting minutes signaled further rate hikes to come. The meeting minutes showed a clear consensus that the panel would like to raise rates above the 3 percent mark in order to place short term interest rates in restrictive territory. The Euro also weakened due to the market pricing in political instability within the EU due to Italy’s proposed budget submission. For today, investors should keep an eye on any updates coming out of the EU summit with the main focus being Brexit and Italy’s budget plan.
The Euro broke below the 1.1517 support paving the way for a drop towards the next support level at 1.1438. Bearish momentum is in play given that prices are trading below all three moving averages. Adding to the bearish momentum, the 13-period moving average has also recently crossed below the 50-period moving average.
Support: 1.1517 1.1438
Resistance: 1.1631 1.1710