It led to the expected market correction, which I wrote about in yesterday's broader analysis. According to the we arrived today extending between 1,0954-1,10. Maximum recorded at the level of 1.0969. Along the way, we beat yesterday's high of 1.0871 and the of 1.0916. At the moment, there was profit-taking and a currency pair is in the vicinity of 1.0944.
Economic calendar for Wednesday:
16:00 USD Sales of existing real estate (Jun)
16:00 USD Sales of existing homes (m / m) (Jun)
The forecast for Wednesday:
The currency pair is in a short-term correction of the recent declines in the level of 1.0808 1,1218-. After today's defeat at 1.0916 and attempt to attack the higher price levels, for the moment there was profit. However, there is a chance that tomorrow will be continued growth towards at 1,10-1,1013 (50% fibo recent declines). In the case of overcoming this resistance, the demand will have a chance to attack and test the level of 1,1061-65, (61.8% fibo recent declines). In my opinion, the level of 1.1065 seems to aim maximum, if growth is to be only a correction. Support for potential growth will be weak US data that may suggest postponement of interest rate hikes in the US.
If tomorrow we will know very good data from the US, certainly variant of correction is completed and we can expect a strengthening of the dollar. It is worth mentioning here that better US data will confirm recent comments from Fed members who suggest that there is a real chance for a rate hike in the US later this year. In this case, you must reckon with falls and back on the last minima in the vicinity of 1,0808-31.
Tomorrow the direction of the currency pair data from the US will decide.
Note: For test support at 1,0808-31 know the answer about the future and direction of the currency pair. Any defeat of support will have serious consequences in a wider horizon, as the market will open the way for this year's lows at 1.0456.