The Euro fell for the third consecutive day as the demand on the US Dollar continued to increase due to the global economic slowdown and the Brexit chaos. March Economic Sentiment Index, resulted at 105.5, below the expected 105.9. Consumer Confidence came in at -7.2 as expected, while German March inflation missed the forecast. The weak data accelerated EUR's decline, despite the US GDP data was far from encouraging, as it printed 2.2%, below the expected 2.4%. The US also released weekly unemployment claims down to 211K, while February Pending Home Sales declined to -1.0% MoM, well below the 0.7% advance expected. Today, traders will mostly focus on the German Retail Sales, the US core PCE, and the Michigan Consumer Sentiment Index as all of them can heavily influence the global economic situation.
The Euro successfully broke below 1.1250 during yesterday’s session taking price to retest our support level 1.1225 (S1). A break below this level could accelerate the decline towards 1.12 (S2) and the yearly low 1.1175 (S3). However, a break above 1.1250 (R1), the bulls will temporarily pause this current bearish momentum.
Support: 1.1225 / 1.12 / 1.1175
Resistance: 1.1250 / 1.1280 / 1.13