The Euro recovered a bit on Monday after the US Existing Home Sales printed the worst fall since 2015, putting a temporary hold on the US Dollar’s demand. Today, we have another relatively slow day as the EU will publish April Consumer Confidence, while the US will offer March New Home Sales. The single currency’s overall sentiment remains bearish and it will likely consolidate in today’s session, as lack of any major fundamental catalyst will keep the volatility subdued.
The Euro bounced after it found support at 1.1230 (S1) and currently testing the 1.1250 (R1). A successful break could take the common currency towards 1.1280 (R2) where we also find the 50 and the 200-day moving averages. This current recovery will probably be short-lived as the sentiment remains bearish. Only a break above 1.13 (R3) will pressure the bears to cover their short positions.
Support: 1.1230 / 1.1210 / 1.1185
Resistance: 1.1250 / 1.1280 / 1.13