May 9, 2019, | SQUARED DIRECT – Euro price tumbled as it failed to gather momentum above the 1.12 handle and fell towards 1.1183 during yesterday’s very calm session due to the absence of significant macroeconomic data releases from the euro area. ECB President Draghi didn’t deliver any remarks that could have triggered a reaction from the markets either.
Furthermore, White House spokeswoman Sanders said they have received an indication that China was willing to make a trade deal. Earlier this morning, Trump said that “China broke trade deal”. None of these headlines, however, pushed the market participants to act on, as the pair continued to trade in the same small range. Today’s potential catalyst could be the US PPI and FED Powell’s speech as the euro area lacks any macroeconomic data.
EURUSD technical analysis
The Euro traded in a 30 pips range yesterday, over and under the 1.12 handle. The bulls could be gathering momentum to retest 1.1230 (R1) and the 200-day moving average in today’s session, that’s where the bears should be waiting to take the single currency back towards the yearly lows. The sellers will need to break below 1.1185 (S1) to confirm more potential weakness. However, a break above 1.1260 (R2) could signal the beginning of a much significant bullish reversal.
Support: 1.1185 / 1.1115
Resistance: 1.1230 / 1.1260
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