The Euro found support by the end of yesterday’s session after the greenback sank sharply following reports that the FOMC gave the NY Fed the green light to raise the limit on its overnight repo operations by $45 billion. Today, the focus will be on the German Manufacturing PMI data and the ECB monetary policy meeting. The ECB board members are divided on the need to revive bond purchases, as the recent macro data releases have been anything but positive, which could weigh over the Single currency. However, the downside looks limited, as September's stimulus has already been priced in. Furthermore, markets now are more interested in knowing the possible changes in 2019 and 2020 under incoming President Christine Lagarde.
The Single currency bears could not find enough momentum to keep price below the 1.1130 key level. The bulls remain in control as they are looking to retest the recent highs 1.1179 and possibly further. The sellers on the other hand, will attempt to push price towards the October rising trend line, which is around 1.11.
Support: 1.1130 / 1.11
Resistance: 1.1165 / 1.12