Yesterday, the Euro was trading at 1.1280 against the Dollar
The euro extended range in its weekly gains to 1.1283, but closed unchanged at 1.1262. The Dollar was under selling pressure during the first half of the day as traders were still reacting to President Trump's new tariffs on EU products worth $ 11 billion. Traders are also worried about the ECB and Federal Reserve monetary policy meetings today, as both central banks have turned into full-fledged creditors since their previous meetings. The market sentiment is already bearish on both currencies, but the euro will be under even greater pressure if the ECB has any further concerns about the economic outlook. On the other hand, the Federal Reserve will shock the market negatively if it points to any chance of a rate cut. In addition to these events, EU representatives will hold an emergency summit to discuss postponing Britain's exit from the EU, while the United States will release inflation data in March.
Yesterday, the Euro tested 1.1280 (the first resistance barrier) as expected, but failed to break above it. The price dropped and closed at 1.1260, above the 1.1250 support area. Momentum is still with buyers, as the 1.1280 (first resistance barrier) is very likely for today. However, if the price falls below 1.1250 (the first support barrier), we may see a shift in momentum and the single currency may weaken and fall towards 1.12 (second support barrier).
Support: 1.1250 / 1.12
Resistance: 1.1280 / 1.13