The Euro continued to slide for the third consecutive day yesterday after German jobs data confirmed that the Eurozone’s strongest economy is going through an economic slowdown. Germany’s unemployment rate rose from 4.9% to 5%, first increase in two years, as it also reported the largest one-month increase in unemployment in 10 years. Moreover, the US-China trade tensions are showing no signs of relief, adding more downside pressure on the single currency. Today the common currency could drop to a fresh 2019 lows if the US macro data beats market expectations, which will lead to a drop in the Fed rate cut probability and higher demand on the greenback.
The Euro broke yet another support level yesterday, 1.1150, as the bears are completely back in control. The sellers are eyeing to take out their next target, the 2019 low 1.1107. If successful, then the next challenging support would be 1.1050. The bulls are completely out of options, regaining the 1.1150 level won’t be enough to take back control, they need to find the momentum to at least take out 1.1180 to break free.
Support: 1.1107 / 1.1050
Resistance: 1.1150 / 1.1180