Today there has been a decline, without the expected correction in the vicinity of 1.1040. This means that the alternative embodiment, which assumed no test zone decreases resistance was today realized. To a large extent the impact of the weakness of the euro have today, weak data from Germany and a good reading of ISM for industry in the US, which was a key figure of the day. Euro remains weak, because everyone a better reading of the USA brings us closer to a rate hike in December. In addition, the uncertain situation of Greece, will escape the dollar. Minimum recorded at the level of 1.0886.
Economic Calendar for Tuesday:
9:00 EUR change in the unemployment rate in Spain
9:55 EUR German unemployment change
9:55 EUR German unemployment rate
11:00 EUR Core CPI
11:00 EUR CPI
16:00 USD Order factories
Tomorrow the market will certainly keep track of the data that will flow from Europe in particular, the CPI for the Eurozone (forecast assumes a rebound to 0.2%).
Forecast for Tuesday:
Euro still remains weak, not a situation in negotiations between Greece and the EU leads to a high degree of uncertainty. In this case, you should expect that the market will promote the US dollar as a haven. Very good ISM reading today awakens the appetite for interest rate hikes and lets assume that the earlier weaker readings from the USA were temporary.
With this in mind it should be assumed that further declines a matter of time. At the moment, we find ourselves at the level of 1.0930. As long as we continue to be above 1,0860-80 (the level of support I marked in gray), you must reckon with the possibility of movement towards 1,0980-1,10. In this area once again to the game should enter the supply side, which pushes 1,0880-1,09 course in the area. Currently, the currency pair is very high of 76%. For people who want to obtain reliable information about the input line with the trend, I suggest you wait to pierce a key level of 1,0860-80. Breaking the support should lead to a test of 1.0670 levels and 1.0520.
In an alternative version the market once again will head straight south, without correction recent declines.
Note: The currency pair is under pressure and any output up, they will be treated as a good opportunity to open short positions.
I encourage everyone to comment and wish you many successful investments.