The single currency consolidated in a tight 25 pips range yesterday without any clear bias as traders remain confused whether or not trade disputes would deepen the global economic downturn. However, the overall bearish sentiment persists as tensions between China and the US is continuously increasing through war of words between both countries. In terms of macroeconomics, US GDP came as the market expected but lower from last quarter. However, Pending Home Sales surprisingly plunged in the negative territory in April, putting a limit on the Dollar gains. Looking ahead, traders will be focusing on today’s German data, any disappointment will likely let the Euro to resume its downside momentum.
The Euro traded between 1.1140 and 1.1115 as neither the bulls nor the bears found enough momentum to break to either side. The bulls need to break above 1.1150 to confirm a near-term counter trend rally, and the bears on the other side are looking to take out the 1.1108 yearly low to push price even further to the downside.
Support: 1.1107 / 1.1050
Resistance: 1.1150 / 1.1180