The Euro slips as risk appetite falls and safe haven demand increases. Investors flooded the market with greenback buying as trade tensions between the U.S and China reemerged following Donald Trump's threat to increase tariffs by an additional $200 billion. Moreover, the sell off in emerging market debt led investors to turn towards the safe haven U.S Dollar. Adding to the Euro's sorrows, Italian banks are known to have large exposure to emerging market debt which also led investors to fend off from buying the Common currency. For today, the Single currency will continue to be driven by sentiment surrounding the trade war between the U.S and China and the performance of emerging market debt.
The negative sentiment surrounding the Euro is reflected by the chart as prices broke below both the 13-period moving average and 50-period moving average. A break below the 200-period moving average and the 1.15833 mark will signal a drop towards the 1.15430 support level.
Support: 1.15833 1.15430
Resistance: 1.16428 1.17528