The Euro surged yesterday after the disappointing US Retail Sales and the US-China trade disagreements, pushing the Single currency to fresh seven-week high. Adding to the pair’s strength was upbeat comments from the ECB policymakers, namely Chief Economist Philip Lane and council member François Villeroy de Galhau, both refrained from providing any more supports to further monetary policy easing. Additionally, Robert Holzmann and Klaas Knot demanded a radical change under the incoming President Christine Lagarde while also supporting fiscal measures for the betterment of the regional economy. Today, the sentiment will likely remain bullish if the US Building Permits and Philadelphia Fed Manufacturing Index disappoint market participants.
The Single currency broke above 1.1065 yesterday eyeing next the 1.11 resistance level, as the bulls dominate the short and the medium-term. The buyers will need to hold the recently broken resistance, gather momentum in order to push price towards 1.11 and possibly extend gains towards 1.1130. The bears, on the other hand, need to break below 1.1065 to halt this recent bullish momentum.
Support: 1.1065 / 1.1025
Resistance: 1.11 / 1.1130