The Euro closed positively for the third consecutive day as traders are still discounting a Federal Reserve rate cut later this year. Therefore, the path of least resistance is on the higher side and the pair will likely continue rising. Friday’s German and Euro Zone PMI better-than-expected numbers helped the single currency to advance towards 1.1370. Today, if the German IFO surveys for June show signs of improvement in the Eurozone’s largest economy, we will likely see the common currency jumping above 1.14 for the first time since March.
The Euro broke above a major resistance level on Friday, 1.1340, opening doors for a 1.14 retest and beyond. The bulls are in complete control and are looking to take the single currency higher towards 1.14 and 1.1440 in today’s session. The bears, however, need to stop this current bullish momentum by breaking below 1.1340, in order to take it lower.
Support: 1.1370 / 1.1340
Resistance: 1.14 / 1.1440