After a 2-week rout against the US dollar, the Euro has finally somewhat stabilized and is now looking for it’s 3rd day of gains against the greenback and with no major events due out from the US, the market will focus on economic news to be released today from the Eurozone.
To kick off there will be a speech from Luis De Guindos the Vice-president of the European Central Bank which will be followed up by Markit Services PMI figures from Germany and the Eurozone as a whole and with both numbers expected to hit the market above expectations, we may see the European currency receive further support.
How much further support it receives is open for questions and although the immense pressure on the currency has subsided for now, a range of between $1.1865 and $1.1955 is expected with the top figure proving to be a resistance point until the Fed is move forthcoming on the monetary policy moving forward.
The 200 day moving average proved to be problematic for the Euro and acted as strong resistance level last Thursday sending the Euro spiraling down almost 100 points which means the market is not ready to push through this level just for now.
The 100 day moving average is also proving to be a headache and in yesterday’s trading session there was also a strong rejection as the currency headed for this level and we will see how the day pans out, and there may be another run for this level after the news from the Eurozone today.