Despite the Euro closing relatively unchanged during yesterday’s session, the market sentiment, however, could be setting up for a short-term bullish impulse. German FM Olaf Scholz noted that the 2020 budget would tackle great challenges, including the global trade dispute, adding that German’s fiscal position is solid. Furthermore, US jobs openings missed expectations, which dented the sentiment surrounding the greenback even more. The EU macroeconomic calendar will remain scarce today, with no relevant data scheduled, while the US will release the August PPI. A weak data will probably push the Single currency towards the medium-term bearish trend line, where investors would likely be waiting for tomorrow’s ECB announcement before taking some directional risk.
The Single currency bulls printed a higher low just above the 50-day moving average, as the buyers are gearing up for a potential push above the 1.1065 resistance, eyeing the bearish trend line, 1.1080. 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 1.10.
Support: 1.10 / 1.0965
Resistance: 1.1065 / 1.1110