The Euro slid further during yesterday’s session after the US President Trump’s latest comments failed to offer any fresh details on the US-China trade deal while increasing the trade anxiety, hinting that the tariffs would rise substantially if they do not make a deal. Instead, Trump attacked the Fed’s monetary policy of keeping rates at higher levels than its major world counterparts. The common currency remains vulnerable and risks falling below the 1.10 key psychological level if today Jerome Powell sounds just a bit hawkish, while he gives his testimony before the Congress. It is also important to note that, Germany and the US will release their inflation data; however, US Fed’s chief testimony will be the key event that is going to move the market.
The European currency bulls failed to retest the 200-day moving average as price rolled over and broke to new intraday lows, after bouncing just above the 1.10 key level. Today, the bears will be looking to take out the 1.10 key support level, as they are eyeing to possibly retest the 1.0970 support level. The bulls on the other hand, need to break above the 200-day moving average to stop this bearish domination.
Support: 1.10 / 1.0970
Resistance: 1.1017 / 1.1040