The Euro stagnates during Thursday's session following the harsh two day drop it faced earlier. The EU CPI figures printed in line with expectations which did not give investors any reason to bet on the currency's intra-day direction. For now, the Common currency's momentum remains bearish as the ECB's latest remarks were dovish rather than hawkish. For today, investors need to monitor any announcement related to the trade war between the US and China. A positive announcement will push the currency higher as easing trade tension between the world's strongest nations will allow the European economy to prosper. Additionally, the Single currency could be affected by the release of the Michigan Consumer Sentiment figure which will have a direct impact on the greenback's performance during the day.
The Euro's momentum continues to be bearish as prices remain below all the three major moving averages. As presented by the chart below, the 50-period moving average (yellow) is slowly approaching the 200-period moving average (purple), and when the 50-period moving average crosses below the 200-period moving average, an influx of investors will short the pair. A confirmation of a drop will come after prices break below the 1.1380 support which will open up the path for a drop towards 1.1320.
Support: 1.1380 / 1.1320
Resistance: 1.1410 / 1.1449