The first part of the session took place under the dictation of the demand side, which led to increases in the vicinity of an important at 1,1270-95. After peaking at 1. 1290 , the supply carried out a counterattack, erasing earlier gains in its entirety., Defeating the occasion of support at 1,12-1,1215. Summing up the first session of this week, it is worth mentioning a weaker reading of the ISM index for manufacturing in the US, which does not threaten the dollar too much. This may mean that the burden of expectations and speculation market will move in the direction of possible actions the ECB.
Tuesday, 6 October 2015
8:00 EUR Order factories in Germany
14:30 USD Trade Balance
19:00 EUR ECB President Mario Draghi
The most important event of the day is undoubtedly the speech of Mario Draghi. Investors will await the announcement of further action by the ECB.
Forecast for Tuesday:
During Tuesday's session, we should see further declines. Breaking the 1,12-1,1215, opens the way towards lower price levels. The first supply will move towards support at 1.1155. The next natural target for the supply side is the level 1.1115 (lows of 23 and 25 September).
The strong support for supply expectations are associated with the occurrence of the President of the ECB.
In an alternative version the demand once again lead to increases toward the at 1.1240.
According to what I have written in previous analyzes, the dollar should gain a broader term, based on expectations of the Fed and the ECB.