The Euro soared yesterday after the FED signaled more rate cuts are imminent as trade uncertainties and concerns about global growth weakness continue to weigh on economy. Looking forward, the minutes of the European Central Bank's June meeting are due for release today. The common currency could face renewed selling pressure if the minutes hints a deposit rate cut in September, as President Draghi emphasized the easing bias during his speech in Sintra last month. The Single currency, however, will likely surge if the minutes sound less-dovish-than-expected. On the other hand, the US will release its Core CPI numbers and Fed Powell will continue his second day of testimony, but this time any dovish remarks won’t impact the market as hard as it did yesterday.
The Euro broke above 1.1270 resistance along with the 50 and 200-day moving averages. The bulls will have 1.13 in sight to retest as long as price remains above 1.1260-70 area. The buyers are still not in the clear yet, for a complete bullish reversal they need to take out the recent swing high 1.1410. so the bears are still in control and they will attempt to break below 1.1260 in today’s session to target 1.1235.
Support: 1.1270 / 1.1235
Resistance: 1.13 / 1.1345