The Euro recovered yesterday from its Friday lows as the greenback took a breather after last week’s 5 consecutive positive days. As the US – China trade talks intensifies, the common currency will likely resume the sell-off as the broader market sentiment is still bullish on the US Dollar. Furthermore, the single currency will likely face more downward pressures as Italy’s fiscal issues have made a comeback in the last few days. The Eurozone data calendar is light today, so traders will shift their focus on the trade dispute for any possible development.
The Euro bounced yesterday from the 1.1150 support but immediately found resistance at 1.1170 and started to roll over again. This weak demand on the common currency will probably push it lower towards 1.1135 and the yearly low 1.1110. The bulls need to break above 1.1170 to stop this current bearish momentum on this pair.
Support: 1.1150 / 1.1135 / 1.1110
Resistance: 1.1170/ 1.1180