The single currency fell for the fifth consecutive day on Friday as the demand on the Dollar prevailed. The latest macroeconomic data from the US were impressive, which lowered the odds of the possibility of a rate cut by the Fed. As for today, the Euro bears will likely remain in control, as the German finance ministry’s monthly report released over the weekend said the external risks for the economy remain high. Furthermore, ECB policymaker Klass Knot said on Sunday that inflation is not at the level the central bank wants it to be and the only thing the bank can do is to keep the pressure up, which means there are no rate hikes by the ECB on the horizon. Today’s quiet macroeconomic calendar will likely leave the negative sentiment from the weekend to persist and keep the common currency under pressure.
The Euro continued its downward momentum on Friday, closing the week negatively. The bears remain in control and looking to retest the 1.11400 support zone. A break below that level opens the door for a further possible weakness and a retest of the yearly low 1.1110. The bulls however need to break above 1.1180 in order to find momentum and push price higher.
Support: 1.1140 / 1.1110
Resistance: 1.1166 / 1.1180