The Euro attempted to break above the 1.10 resistance level for the third consecutive day, but the bulls lost momentum after German Factory Orders fell in August - the second straight monthly decline – due to lower demand from domestic consumers. Market sentiment remains bearish on the Single currency, although the Fed easing narrative is the main reason behind the recent dollar weakness, however traders still regard the greenback as the better-yielded currency. Today, German Industrial Production data will be published, any miss in estimates will drag the common currency lower. Later on in the US session, the PPI will be published but the market expects no surprises there, and also the Fed Chair Powell will be giving updates regarding the monetary policy.
The Single currency bulls retested the 1.10 level for the third consecutive day, but lost momentum once again as the bears pulled the price back just over the support level 1.0960. The pair has been consolidating in this same range for the past few days, stuck between the 200 and the 50-day moving averages, as market participants are waiting for the break to confirm the next possible trajectory.
Support: 1.0960 / 1.0930
Resistance: 1.10 / 1.1025