Today, the supply side has once again demonstrated the strength. The market starts to discount the difficult situation in the negotiations between Greece and the European Union and better US data will likely show that the US economy bounced up after weak readings from the first quarter. Minimum recorded at the level of 1.0862.
The economic calendar for Wednesday:
8:00 EUR GfK consumer climate in Germany
The forecast for Wednesday:
In view of the strong sell out at lower intervals, we can assume that the currency pair is ready for gentle correction. Given that tomorrow is empty economic calendar, the market may lead to profit-taking from short positions. Additional support for growth should closeness level 1.0881, which is 61.8% fibo increases from 1.0519 - 1.1467. If my assumptions are correct in this case, we should see increases in the vicinity of 1,0995-1,10 level. The area, represent 50% growth from 1.0519 - 1.1467 and the 23.6% fibo recent declines from 1.0862 1,1467-. In the longer term I expect further declines in around 1.0820 levels.
Keep in mind that a currency pair is under pressure and all negative information on Greece, will drive the spiral of fear. In addition, it should be noted that another better data from the US will support the dollar and increased expectations of an interest rate hike.
I encourage everyone to comment and wish you many successful investments.