The common currency dipped to a low of 1.1128 during the US trading hours on Friday after the US NFP beat estimates. The drop, however, was short-lived and the currency pair ended the day on a positive note at 1.1165, amid the US-China trade optimism. Market sentiment remains bullish, therefore the path of least resistance is to the higher side, as traders will be looking to extend gains towards 1.12 in today’s session, if German Manufacturing PMI prints better than expectation.
The Single currency bears were able to retest 1.1130 during Friday’s session, however the bulls quickly came in and pushed price towards the October highs. If 1.1180 is broken, then 1.12 and possibly further will be the buyers’ next target. The bears, on the other hand, are currently under water as they look to push price below the 50-day moving average and the rising up trend, to halt this bullish domination.
Support: 1.1150 / 1.1130
Resistance: 1.1180 / 1.12