The Euro is down to 1.1225 against the Dollar

Basic analysis

The Euro fell to 1.1225, its lowest level this week, as the latest indicator of purchasing managers confirmed that the slowdown in economic growth extended until the second quarter, which supports the ECB's stimulus situation. The German PMI came in below market expectations and remained in the contraction zone at 44.5. EU PMI Markit also remained below analysts' expectations but in the expansion area at 51.3. US data on the single currency pushed for a new bearish move, with retail sales far better than market expectations. The US also issued unemployment claims with a new decline in nearly five decades. Sentiment has turned bearish again, and traders will now look to retest the April low at 1.1185. Furthermore, we expect a very quiet day due to the closure of most major markets on Good Friday.

Technical Analysis

The EUR broke below an important bullish trend and multiple support levels until some support was found at 1.1225. Market sentiment has turned bearish again, and the downtrends will now see a retest of the April low at 1.1185, which is above the yearly high of 1.1175. It is expected that there will be a push towards 1.1250 (the first resistance barrier) or even 1.1280 (the second resistance barrier) before the price finds resistance and retreat. A breakout above 1.13 would negate the sellers' work.

Support: 1.1230 / 1.1210 / 1.1185
Resistance: 1.1250 / 1.1280 / 1.13

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