The undetermined outcome of the Spanish general election combined with Eurozone economic growth worries continued to put pressure on the common currency during yesterday’s session. However, the downside remains capped amid expectations of an improvement in the German ZEW Survey, which is projected to rebound from -22.8 to -13.0 in November. Furthermore, US President Trump is expected to delay auto tariff decision for 6 more months, which will likely support the Euro bulls. Markets now eagerly await the German macro news and some clarity on the US-China trade front for fresh trading impulse, while Trump’s speech later today could also direct the next moves in the spot.
The European currency bulls are gathering momentum to retest the 200-day moving average in today’s session. If the buyers were able to break above it, then a retest of the 1.1075 level will be a likely scenario. However, if the bears reject the price at the 200-day moving average, then the shared currency will likely pullback towards 1.1017 and possibly even further.
Support: 1.1017 / 1.10
Resistance: 1.1050 / 1.1075