The Euro bounced and closed positively yesterday as US Core PCE numbers missed expectations. The shared currency jumped 0.41 percent in the hope of a stronger corrective bounce above 1.12 to ease the pressure on the bulls. Traders will be focusing on today’s macroeconomic data to try and neutralize the immediate bearish outlook. Germany and the EU will release their Unemployment Change as today’s main fundamental focus, whereas the EU will also release its Quarterly and Yearly GDP numbers. If the key German and Eurozone economic data releases paint a positive picture, then we will likely see a stronger bounce on the single currency.
The Euro bounced from the 1.1115 (S1) support as the bears are currently exhausted after last week’s bearish move. The single currency found resistance around 1.1185 (R1). A break above this level could take price higher to retest the 50-day moving average (blue line) 1.12, or possibly even further towards 1.1230 (R2). That’s where the bears will most probably reappear to try and take the common currency lower, as the overall trend is still bearish.
Support: 1.1115 / 1.1050
Resistance: 1.1185 / 1.1230 / 1.1260