The Single currency falls back below 1.1700 as the market discredits Trump's comments relating to the Fed's rate hike policy. On Thursday and Friday, President Trump criticized the Fed's rate hike scheme and complained about the strength of the U.S Dollar which then led to a sell-off in the greenback. Yesterday, investors failed to buy the pair beyond 1.1700 and as of today, they continue to pump up the Dollar to previous level traded on Thursday and Friday before Trump's initial outcry.
For today, the Common currency will be guided by the release of the PMI figures from both the Eurozone and the U.S. Economic outperformance from any side will push the pair in the direction of the outperforming currency.
The pair formed a double top reversal pattern around the 0.786 Fibonacci retracement then dropped below the 200-period moving average. Most recently, the Euro dropped below the 50-period moving average signaling further bearish momentum. Underperformance from the EU's PMI figures will push the pair lower towards the 1.27 extension at 1.15678.
Support: 1.16656 1.16028
Resistance: 1.17085 1.17904