The Euro fell during yesterday’s US session, as the Dollar found support after better than expected US Trade Balance deficit for January, which decreased to $51.1B. Furthermore, ECB's Chairman Draghi spoke in Frankfurt, repeating that the risk to the outlook remains to the downside, hinting that a rate hike could be further delayed if needed, limited any possible EUR gain. Today’s macroeconomic calendar has multiple reports to offer although traders will mostly focus on the US Q4 GDP, foreseen at 2.4% vs. the previous estimate of 2.6%. The US will also release the Pending Home Sales data. Europe will offer March Consumer Confidence and the Economic Sentiment Indicator, while Germany will post March inflation estimates.
The Euro attempted to break below 1.1250 (S1) once again during yesterday’s session, but the bulls were able to protect that level for now. The sentiment remains bearish but the single currency could rebound towards 1.1280 before continuing its downward projection by breaking to new lows and testing the 1.1225 (S2).
Support: 1.1250 / 1.1225 / 1.12
Resistance: 1.1280 / 1.13 / 1.1325