The Euro bulls were on a positive mood yesterday after the German Trade Balance published positive data, reassuring market participants that the economy is slowly picking up pace. However, in order for this current momentum to go on and for the Single currency pick up stronger bid, the ECB must not mention rate cuts or bond purchases during Thursday’s meeting. Today, the economic calendar looks empty on the EU side; however, US Job Openings could post weak data, influenced by the poor NFP numbers, which could affect the European currency in a positive way.
The Single currency bulls were able to hold above the 50-day moving average and push higher to retest the 1.1065 resistance, but still couldn’t breakout on the second try. However, price remains strong as the common currency is currently forming a short-term uptrend, if that holds, then we could see the Euro breaking higher today, potentially retesting 1.11. On the other hand, if the bulls lose the 50-day moving average, then the bears will take over once again and push price towards the yearly low.
Support: 1.10 / 1.0965
Resistance: 1.1065 / 1.1110