The Euro advanced during Monday’s session after positive German reports and greenback’s demand easing across the board. The German IFO survey showed that the Business Climate Index rose 99.6 in March from an upwardly revised 98.7 in the previous month. The Current Assessment improved to 103.8 while Expectations surged to 95.6, all of them beating the market's consensus. The single currency lost its momentum ahead of the close amid the absence of a bullish catalyst. Today, traders will continue to watch the German data as GFK Consumer Confidence Survey will be released, while the US will release Housing Starts and Building Permits for February, and the CB Consumer Confidence Index.
The Euro gained some ground yesterday but faced a resistance level at 1.1325 (R1) which is also the 200-day moving average (yellow line). As long as price remains below this level, then the bears will stay in control and attempt to break price lower towards 1.1275 (S1) and beyond. However, a break above 1.1325 (R1) it will open doors for a possible 1.1350 (R2) retest.
Support: 1.1275 / 1.1250 / 1.1225
Resistance: 1.13 / 1.1325 / 1.1350