On Monday evening, Denis Lockhart confirmed that it expects to raise interest rates this year.
On Tuesday, investors' attention will be paid to macro data from Germany which will flow once the United States:
In the morning we will know the GDP and the Ifo business sentiment index in Germany. In the second part of the day we will get data from the US: consumer confidence index Conference Board, the PMI as well as data on sales of new property.
The outlook for EUR / USD:
When analyzing a currency pair from the purely technical it should be noted that in the near future we should see a rebound past increases with the level of 1.1016 to 1.1712 level.
As mentioned above, the that possibility, but we must remember that tomorrow may be under high , due to the amount of data that will be announced. It should also be noted that any information from China may significantly affect the currency pair quotes discussed, and a general sentiment in the markets is not conducive to the dollar.
In the case of developing adjustment, the supply in the first place should lead to declines in the levels around 1.1549. The next natural target for the supply remains zone support levels at 1,1447-65. Support for the supply side should be weaker readings from Germany and better data from the US, which could re-awaken apatite related to the rise in US interest rates.
If Tuesday we get data that will support the common currency, we can once again (despite overbought) to see increases in the vicinity of present peak at 1.1712. In this case, the demand will have to overcome resistance levels located at 1.1600 / 1.1640 and 1.1677 (tops in the second half of January).