The Euro found bid in the first half of yesterday’s trading session as Germany and the EU overall published positive economic data. However, as we said during yesterday’s analysis, any rally to the upside will most likely be short-term and a good opportunity to sell from higher prices. Traders prefer buying Dollars against the Single currency in the big picture, as the primary sentiment driver remains the difference in the monetary policies. The ECB with its loose monetary policy and the Fed pivoting from a rate cut bias to neutral gives a slight advantage to the greenback. Today, the German Industrial Production is expected to miss estimates. If that happens, then that would reinforce the bearish sentiment, possibly yielding deeper losses in the common currency.
The Single currency bulls attempted to push prices higher yesterday; however, the offers were much greater than the bids, as the overall bias turned bearish ever since price broke below the rising trend line a few days ago. Today traders will likely remain short-biased in this market looking to retest the 200-day moving average and possibly further.
Support: 1.1045 / 1.1025
Resistance: 1.1075 / 1.11