The Euro has yet to break below the 1.16353 support level even though the U.S GDP figures beat expectations. The year over year GDP growth printed 3.2% relative to the expected 2.3%, while the quarter over quarter figure hit a staggering 4.1% on an annualized basis, representing the fastest quarterly growth in the past four years. With last week's surge in U.S yields and the failure of the ECB to provide any information related to the future path of interest rates in Europe, the fundamental bias points downwards for the Single currency. For today, investors need to focus on the U.S Pending Home Sales figure. A better than expected number will pave the way for a possible break of the 1.16353 support level.
The Euro continues to point lower after the formation of last week's bearish Triple Top pattern. Adding to the bearish momentum, the currency remains below the 50-period moving average and the 200-period moving average. A break below the 1.16480 minor support level will pave the way for a drop towards the 1.27 Fibonacci extension at 1.15872 which also coincides with a price action support level.
Support: 1.16480 1.15872
Resistance: 1.16681 1.17174