The Euro bears took control during yesterday’s session after closing well below the 1.12 psychological figure. The breakdown was caused by the unstoppable Dollar strength across the board amid a less dovish Fed. Moreover, traders are dropping the European currency after multiple weak economic data signaling more dovish narrative ahead of ECB meeting tomorrow. Today, Germany will release its Manufacturing PMI data, which is expected to show contraction for the 7th straight month in July. If that’s true, it will expose the Single currency to drop and retest the 2019 lows 1.11.
The Single currency bears broke below 1.12 and 1.1180 during yesterday’s session targeting next the 2019 lows 1.1107. If the bulls didn’t show any strong reaction around that level, then a break to new yearly lows will be on the cards either by today or tomorrow. The bears will remain in complete control of the recent trend as long as price is trading below 1.12.
Support: 1.1107 / 1.1050
Resistance: 1.1185 / 1.12