The Euro falls even further for the week after a report claiming that President Trump is planning to impose a 25% tariff on European car imports. This report was released yesterday by German publication WirtschaftsWoche, which was followed by a stock price dip for European car manufacturers which then spilled into the Euro. This news adds further negativity to the Euro after this week’s earlier remarks from ECB’s Draghi hinting of a possible slowdown in the European economy which will force the ECB to delay their plans to begin hiking rates. For today, the focus will divert away from Euro fundamentals as investors will focus on the release of the US GDP report and Fed Powell's speech which will affect the Single currency from the US Dollar’s side.
Yesterday, the Euro broke below the 1.1315 support level paving the way for a drop towards the next key support level at 1.1260. From this point, further downside is expected given that prices have not reached the targeted support level yet. Furthermore, momentum remains bearish as prices continue to trend below the 13-period moving average.
Support: 1.1315 / 1.1260
Resistance: 1.1431 / 1.1468