The Euro remains below 1.1400 following the deep sell off from last week. The Euro slipped last week as the political scene in Europe deteriorated after the EU and Italy’s government clash on Italy’s proposed budget plan for 2019. The problem here is that Italy’s government is insisting on a budget plan that does not meet EU’s risk management standards. For today, in addition to any political developments in Europe, traders will also be monitoring the release of the US PCE Deflator figure which will impact the US Dollar and therefore the Common currency.
Depending on the political scene in Europe and the result of the US PCE Deflator figure, the pair will either break above the 1.1446 resistance level exposing the 1.1517 level and the 200-period moving average, or break below the 1.1322 support level exposing the 1.1285 level and forming a new yearly low.
Support: 1.1322 1.1285
Resistance: 1.1446 1.1517