Investor activity during the American session was low. Due to the lack of catalysts for movement, the EUR/USD dropped to 1.1072 and then restored to 1.1088 by trade opening in Asia. The euro spent the day in a 33 point corridor range.
Market Expectations:
On Tuesday I am sticking with a bullish mood for the pair and reckon that, with support from the euro/pound, the euro/dollar will rise to 1.1128. The news is little, too little for it to rock the market. Due to this, the euro’s strengthening has a ceiling of 1.1150.
Day’s News (EET):
- 08:45, Swiss July unemployment level;
- 09:00, German June balance of trade;
- 11:30, UK production in manufacturing industries and industrial production in June. UK balance of trade for June;
- 15:15, Canadian foundations lain for new homes in June;
- 15:30, US productivity in the non-farm sector and labour force expenses in Q2 of 2016;
- 17:00, UK Q2 GDP assessment from NIESR and US index for economic optimism among consumers in August from IBD/TIPP.
Technical Analysis:
Intraday forecast: minimum: 1.1071 (current Asian), maximum: 1.1128, close: 1.1101.
Euro/dollar rate on the hourly. Source: TradingView
The euro dollar is still trading below the 45th degree and LB. While traders within the price are banking on a rate drop from the BoE, the euro/pound will offer support to the euro/dollar.
When a cross rises with a weakening dollar, the euro/dollar rate sees a sharp rise. When a cross rises with a rising dollar, the euro/dollar consolidates in a sideways. The stronger the EUR/USD growth from its current level, the higher the likeliness of us seeing a test of 1.12.
