The Euro falls further as Eurozone PMI data show a slowdown in business growth within the region. The economic data disappointment adds to the political jitters in the EU making matters even worse for the outlook of the Euro going forward. The political scene between the EU and Italy remains negative as both sides show continuous stubbornness on their opinion regarding Italy’s budget plan for 2019. For today, investors will focus on the ECB Draghi’s speech and they will be monitoring what he will have to say about the monetary policy’s state going forward given the growing political and economic concerns surrounding the EU region.
After breaking the 1.1416 support level, the pair rises back up to the same level to test the significance of the initial break. With the negative sentiment surrounding the pair, the pair is projected to confirm the initial break below the 1.1416 by rejecting to break above the level. Note that the 13-period moving average has been acting a resistance for a while now and prices are again expected to continue to resist this level. As moving averages point lower and prices follow, the next key level to monitor will be the 1.1350 support level.
Support: 1.1416 1.1350
Resistance: 1.1517 1.1553