The Euro drops back towards 1.1320 following the strengthening of the US Dollar. The US Dollar pressured the European bloc’s currency lower after US Treasury yields recovered from their earlier slump last week. Most notably, the 10-Year US Treasury yield bounced up from 2.85% to 2.89%. In terms of Euro specific fundamentals, the currency is also facing pressures internally with the protests in France and the growing Brexit turmoil taking center stage. For today, investors need to monitor any updates or changes related to Brexit and the political scene in France. Moreover, investors need to also track the results of the US CPI figures as they will play a part in the pair’s movement from the greenback’s side.
The Euro rejects breaking above the 200-period moving average (purple) signaling that the pair's bias remains bearish. Prices are currently ranging around a key support level at 1.1320 and the 13-period moving average just broke below the 50-period moving average adding to the bearish momentum of the pair. The next leg downwards will only be confirmed if prices break below the lower end of the support level at 1.1285.
Support: 1.1285 / 1.1230
Resistance: 1.1350 / 1.1426