The Euro recovered yesterday after UK MPs voted for a general election on 12 of December; however, the risk remains to the downside. The German Unemployment Change will keep traders entertained in the European session, as the real focus would be in the US session where ADP Employment figures and US Q3 GDP data along with the FED Interest Rate Decision will take the spotlight. The US dollar tends to appreciate following a Fed rate cut, as previous two analysis has shown that the greenback has risen on the day of the cut in July and September this year. Additionally, the odds of a stronger Dollar would increase if the Fed signals a pause in its easing cycle for this year.
The Single currency bulls found support at the 1.1073 level, pushing the pair higher retesting the recently broken up trend. If the buyers find enough momentum and push price above 1.1130 then that would likely confirm a bullish trend continuation, taking price towards the recent swing highs. On the other hand, if the trend line act as a strong resistance for the third consecutive day, then the Euro will likely roll over and retest 1.1073 and possibly more.
Support: 1.11 / 1.1073
Resistance: 1.1130 / 1.1155