The Euro closed relatively unchanged yesterday as the single currency bulls are starting to lose momentum after some positive reports that the US and China have agreed to another truce ahead of the weekend’s G-20 meeting. It is worth noting that the Greenback could pick up some steam if trade tensions between the 2 largest economies will be resolved, as it will ease pressure on the US Federal Reserve to cut rates. Looking ahead, if today’s US GDP and Pending Home Sales numbers beat the forecast, they could also influence the Fed’s decision to delay rate cuts.
The Euro bulls are currently being tested around a key support level, 1.1348. The buyers must protect this level to keep the recent momentum alive and push price higher once again to retest 1.1410. The bears, on the other hand, will attempt to break below 1.1340s to confirm more downside momentum towards 1.13.
Support: 1.1348 / 1.13
Resistance: 1.1383 / 1.1410