The Euro attempted to break above 1.18 yesterday during the FOMC, however price got rejected after Powell said that the US economy will be struggling against dis-inflationary pressures rather than inflationary. Additionally, the single currency looks extremely overbought at these levels with the RSI showing a bearish divergence with price. If Germany reports a bigger-than-expected economic contraction in Q2, it could trigger further losses on the pair. However, the downside looks limited for now as the greenback will likely experience another wave of selling if the US Q2 GDP prints below estimates.
Support: 1.17 / 1.1650
Resistance: 1.18 / 1.1850
