The Euro fell to 1.1225, its lowest for this week, as the latest Markit PMI confirmed that the sluggish economic growth has extended into the second quarter, backing the case of ECB’s stimulus. German Manufacturing PMI missed market’s expectations and remained in contraction territory at 44.5. EU Markit PMI Composite also missed the analysts’ expectations but stayed in expansion territory at 51.3. US data pressured the common currency to another push lower, as Retail Sales were much better than the market expected. The US also released unemployment claims, with a new almost five-decade low. The sentiment turned bearish once again and traders will now look to retest the April lows, 1.1185. Although today, we expect a very slow day, as most major markets are closed for Good Friday.
The Euro broke below an important up trend and multiple support levels until price found some support at 1.1225. The market sentiment turned full on bearish once again, and now traders will be looking to retest the April lows 1.1185, which is just above the yearly lows 1.1175. A push towards 1.1250 (R1) or even 1.1280 (R2) is expected before price finds resistance and rolls over. Only a break above 1.13 will invalidate the bears’ case.
Support: 1.1230 / 1.1210 / 1.1185
Resistance: 1.1250 / 1.1280 / 1.13