The Euro traded in a very tight range yesterday as the single currency remains under pressure ahead of German GDP, PMI and IFO numbers. FOMC minutes showed that the Fed is willing to remain neutral with no rate hikes or cuts on the horizon even if the economy improves. Additionally, the demand on the greenback remains high across the board as the world is currently facing a dollar shortage. That said, the common currency could take a beating if any of today’s important economic data misses expectations or shows an unexpected deterioration in the Eurozone economy.
The Euro attempted to break above 1.1170-80 resistance for the second consecutive day but it failed again as the sellers showed that they are still in control. The bears need to break below 1.1140 to gain momentum and push price lower towards the yearly low 1.1110. On the other hand, the bulls will try to break above the 1.1170-80 resistance for the third time today in order to gain traction and lift the euro towards the bulls’ territory.
Support: 1.1140 / 1.1110
Resistance: 1.1170/ 1.1180