The Euro had jumped to a high of 1.1025 yesterday, as the greenback faced a sell-off on weaker than expected CB Consumer Confidence, renewed US-China trade tensions and headlines indicating that Nancy Pelosi, the US House Speaker, plans a formal impeachment inquiry of President Trump. The rise, however, was short-lived, as the US Dollar found bid again in Asia, possibly due to reports stating that China is planning to boost purchases of US farm products as a goodwill gesture ahead of the next month's high-level trade talks. In economic news, Germany will be releasing its Gfk Consumer Climate data, giving the recent fragility in the German economy; a slight miss in expectations will dent the market sentiment to the bears’ side. In the US, on the other hand, two FOMC members will be giving a speech regarding the recent monetary policy along with the release of August New Home Sales, if the data exceeds expectations then the Dollar will likely finish up strong in today’s session.
The Single currency recovered back above 1.10, as the bulls remain resilient in protecting the crucial support 1.0930. However, the bias remains with the bears as long as price is trading below the bearish trend line and the 200-day moving average. A retest of 1.1025 is likely before resume the sell-off towards yesterday’s lows and possibly further.
Support: 1.0968 / 1.0930
Resistance: 1.10 / 1.1065