The Single currency drops back down as the U.S Dollar regains momentum. The greenback started to rise again on Tuesday after Dollar bulls took a breather on Monday. Although Eurozone's GDP figure and ZEW economic sentiment indicator beat expectations, the Euro failed to rise signaling that investors are not putting much emphasis on what has happened in the past but are focusing on what lies ahead. What lies ahead for the Euro is worrisome and the major issues are: Turkish turmoil and the potential impact on European banks, Trump's tariffs imposed on Europe and their potential impact on European exports, and the weakness in China which signals a drop in demand for European goods. For today, investors will shift their focus towards economic releases from the U.S with Retail Sales and Industrial Production figures set to be released.
The Euro rejects the 13-period moving average signaling bearish momentum. Following the rejection, the Single currency continued its downward trend. Given the negative sentiment surrounding the Euro, a break below the 1.13182 support level will expose the 1.12433 support level.
Support: 1.13182 1.12433
Resistance: 1.13432 1.13957