The Euro fell yesterday after the German and the Eurozone Manufacturing PMI data disappointed the market, as the numbers indicate that the EU is on the brink of a recession. Later on, ECB Draghi in his final speech as President dented the market sentiment even further when he warned that slowing global growth and Brexit uncertainty pose a risk to growth in the Eurozone economy amid concerns that Germany remains on the brink of recession. Today, traders will shift their focus towards the German lfo Business Climate Index for further directional clues.
The Single currency bulls attempted to retest the recent highs 1.1179 but the bears took full control and pulled price back towards the 50-day moving average. The rising uptrend since the beginning of October is still bullish but the bears are eager to retest it during today’s session. A break below it will change the whole market sentiment to the sellers’ side, thus the bulls will need to protect the key 1.11 level at all cost.
Support: 1.11 / 1.1065
Resistance: 1.1130 / 1.1165