The Euro continued to lose ground in yesterday’s session for the 3rd day in a row as investors’ bullish sentiment on the US Dollar remains strong. Also, the German Factory Orders didn’t help to boost the Single Currency as it missed the estimates (-1.6% vs 0.3%). Today we have the German Industrial Production coming out in the morning which could have a little impact on the Euro. So our main focus is later in the day when ECB Economic Bulletin and EU Economic Forecasts are set to be released and later on ECB’s Mersch will be speaking.
The Euro bulls lost the 1.14 key support as the bears are still in control since the beginning of the month. 1.14 previous support should act as a resistance now if the bears are willing to stay in control. The next support level to watch is 1.1350 (S1), if lost then it could pave a way for further weakness towards 1.13 (S2). The bulls need to get price back above 1.14 (S1) to regain control.
Support: 1.1350/ 1.13
Resistance: 1.14/ 1.1450