The Euro kept trading in a sideways manner yesterday as market participants are still unsure from the outcome of Trump-Xi meeting, which is going to take place this Saturday. Reports has been spread yesterday about a tentative truce between the US and China. However, Larry Kudlow stated that the US could still go ahead with additional tariffs on Chinese products if conditions doesn’t meet the requirements. As a result, the single currency will likely continue to trade in a sideways manner in Europe, but could pick up steam in the American session following the release of the US personal spending, personal income and the core PCE data. That said, the direction of the next big move largely depends on the outcome of Saturday's Trump-Xi meeting.
The Euro is stuck in a consolidation between 1.1385 and 1.1348, as the bulls and bears are waiting for a break to either side to confirm the next possible direction. A break above 1.1385 will push the single currency back towards the recent high 1.1410. On the other hand, a break below 1.1348 will open doors for further weakness towards 1.13.
Support: 1.1348 / 1.13
Resistance: 1.1385 / 1.1410