The Euro extended its losses for the third consecutive day as the US Dollar demand continues. The latest economic data from the US points to a stronger economy in the first quarter than previously expected. A much stronger economy would force the FED to continue raising interest rates, which automatically pushes the Dollar higher. The single currency could see a temporary bounce to the upside if the GDP fails to beat expectations by a big margin. However, the pair may slide below 1.11 if the GDP prints above 3%.
The Euro kept falling yesterday until it found support just over 1.1115 (S1). After 3 consecutive red days, we could see a corrective bounce to 1.1185 (R2) before continuing its downward trend. If the bears take out 1.1115(S1), then the next significant support is around 1.1050 (S2). The bulls would remain under pressure, as long as price remains below 1.13.
Support: 1.1115 / 1.1050
Resistance: 1.1141 / 1.1185