The US Dollar started the week with positive demand across the board, as risk aversion sent traders into safe-haven assets. The Euro, on the other hand, lacks buyers ahead of the ECB monetary policy decision later this week, as market participants are anticipating more dovishness from European policymakers. In terms of macroeconomics, the US will release the Existing Home Sales for June, if the data beats the forecast, then we will likely see further strength on the greenback, pushing the Single currency back towards the yearly low, 1.11.
The Euro bulls lost the battle yesterday after losing the 1.12 support level. If the bears found the required momentum and push through 1.1185, then we could see further weakness in the common currency, taking price towards 1.1150 and beyond. The bulls, however, need to break back above 1.12 to halt this latest bearish domination.
Support: 1.1185 / 1.1150
Resistance: 1.12 / 1.1240