The Euro continues to lose ground as expected after the US Dollar index derived support from the US-China trade uncertainty as well as the Hong Kong political chaos, which led to a broader market risk-aversion. Furthermore, the shared currency remains undermined by the Spanish general election outcome, a legislative stalemate with neither the left nor right having a majority. The renewed Spanish woes will continue to weigh on the European currency, as the country is set to face a tough time forming a progressive government. Looking forward, the overall market sentiment will remain bearish as traders await fresh updates on the US-China trade front as well as the big economic releases from both sides in the week ahead for the next direction.
The European currency bulls could not protect the 200-day moving average critical support on Friday, as the bears officially took back control extending their gains towards 1.1017. The next challenging support level is the psychological round number 1.10. Meanwhile, the bulls will attempt to push price above the 200-day moving average to take back control and halt this bearish domination.
Support: 1.1017 / 1.10
Resistance: 1.1050 / 1.1075