The Euro recovered some ground towards the end of Friday’s session after trading to a new monthly low around 1.1550, it managed to close up 0.4% at 1.1610 versus the USD.
US and China tariff war headlines didn’t help risk sentiment on Friday but the Euro was able to pare some of the weekly losses after Thursday ECB decision and cautious commentary about future growth, lack of inflation and interest rate expectations.
It seems like the 1.1550 level plus large options expiring at 1.15 acted as good support for the EURUSD but the common currency is opening weaker today, below the 1.16 mark apparently on some disagreements around asylum policy within the Angela Merkel’s coalition government.
From a technical perspective, 1.1550 first and then 1.1508, (May low) should provide short-term support on the EURUSD while 1.1653 (June 5 low), should act as first resistance on any upside move. Additionally, keep an eye on headlines coming from the ECB’s Forum on Central Banking, Mario Draghi will be taking the stage and then will have a panel with other Central Bankers including Kuroda (Japan), Lowe (Australia) and Powell (US).