The Euro rebounded on Friday after the market started to price in a possible rate cut from the Fed by the end of the year. After consecutive disappointing data from the US macroeconomic calendar, traders began to doubt the strength of the greenback, which could put an end of the Dollar’s rally. However, the single currency stands at risk of facing a more bearish fate over the coming days if ECB shows a greater willingness to implement a negative interest rate policy (NIRP). As a result, the EURUSD may consolidate until one of the central banks gives in. Today’s macroeconomic calendar could be important for the common currency as Spain, Italy, France, Germany and the Eurozone will release their Manufacturing PMI numbers which could influence the ECB’s decision and ultimately the Euro’s fate.
The Euro broke out from the 30 pips consolidation on Friday and tested the 1.1180 resistance level, but failed to break above it. The bears are still in control in the big picture as long as price is trading below 1.12. The sellers are expected to come back in the market today to push the common currency lower as price is approaching to key resistance levels.
Support: 1.1150 / 1.1108
Resistance: 1.1180 / 1.12