The Euro bulls lost momentum on Friday after much weaker German Industrial Production data and despite the US NFP data missing market expectations. Chairman Powell did not hint any possibility of a rate cut in the upcoming FOMC meeting, which helped investors not to lose faith in the greenback just yet. Today, Germany is expected to show the exports and imports where both are seen contracting in the negative territory, whereas the Trade Balance is also forecasted to drop to €17.5B from €18.1B. The Single currency may face additional downside pressure if Germany’s data drop more than expectations, worrying investors of a deeper slowdown in the EU’s manufacturing powerhouse.
The Single currency attempted to retest the recent resistance level, 1.1065, but the bullish momentum was weak thus price remained trading around the 50-day moving average waiting for the next impulsive wave. The overall bias remains with the bears as long as price is trading below 1.1110. As a result, price will likely continue to rollover today towards 1.10 and possibly lower around 1.0965.
Support: 1.10 / 1.0965
Resistance: 1.1065 / 1.1110