The Euro fell to 1.1192 yesterday, the lowest level since April 2nd, as the demand for the US Dollar exploded to the upside amid growing economic divergence between the US and the Eurozone. The single currency may remain under pressure as polls show the Spanish are undecided less than a week ahead of the general elections. The bearish-euro case may strengthen further if today’s German Business Climate, Expectations and Current Assessment indices for April miss estimates by a wide margin.
The Euro broke below yet another support yesterday but found some bid just above April lows 1.1185 (S2) and ended up closing the day slightly above 1.1210 (S1). The bearish sentiment is strong, and the bias remains to the downside as long as price remains below 1.13. The common currency could pullback towards 1.1230 (R1) or even 1.1250 (R2) before continuing its downward trend to retest April low 1.1185 (S2) and possibly the yearly low 1.1176.
Support: 1.1210 / 1.1185
Resistance: 1.1230 / 1.1250