The Euro continued soaring yesterday as the US Dollar has been offered across the board after Wednesday’s dovish Federal Reserve policy. That said, it is worth noting that the market is also discounting ECB’s next possible rate cut in December 2019 from March 2020 seen last week. If today’s German and Euro Zone PMI for June show further deterioration, the market would shift its focus to more Dovish ECB expectations which could push the single currency lower. However, the current spotlight is on the dovish Fed and weaker US Dollar, and if today’s EU data won’t disappoint, then the common currency will likely continue surging.
The Euro continued to push higher yesterday as the bulls are currently retesting the 1.13 resistance level. If they successfully break higher, then their next target will likely be 1.1340-50. If that level is broken, the bulls could take back full control and change the overall trend to their side by starting to target higher with 1.1370 and 1.14 insight. The bears, on the other hand, need to break below 1.1265 to halt the bulls’ recent momentum.
Support: 1.1265 / 1.1220
Resistance: 1.13 / 1.1340 / 1.1370