The Euro remains weak near two-year lows just above the 1.09 handle, as the bears await the ECB nominated President Lagarde’s speech for the next push lower. The selling interest around the spot surged amid deteriorating Eurozone economic situation, especially after the final Euro area Manufacturing PMIs highlighted that the Eurozone’s manufacturing recession continued for a seventh straight month in August. Meanwhile, the demand on the US Dollar keeps increasing across the board, as renewed US-China trade friction couple with Brexit chaos continue to boost the safe-haven appeal of the greenback. However today, US macroeconomic data expected to print lower than the previous month, which could boost the Common currency in the short-term before continuing lower in the upcoming sessions.
The Single currency found some bid on a major support level 1.0940, after breaking down below another support during yesterday’s session, 1.0965. Currently, price is attempting to retest that broke support possibly as the new resistance in order to continue its downward trajectory towards 1.09. In contrast, the bulls will be looking to retake the 1.0965 level in an attempt to push the Euro higher towards 1.10.
Support: 1.0940 / 1.09
Resistance: 1.0965 / 1.10