Correction of the recent strong increases we have seen during Tuesday's session. As expected, he has come to the fore supply side, which led to the abolition of part of the gains from the 1.1016 to the 1.1712 level. Support for supply proved to be the People's Bank of China, which has lowered interest rates and improved consumer confidence reading of the Conference Board. The introduction of standard action by the People's Bank of China calmed markets after the panic sell-off and the dollar, which took place on Monday. Supply tested on Tuesday an important zone of support levels, extending to levels 1,1447-65 (38.2% Fibonacci retracement recent increases). Minimum recorded at the level of 1.1397 then the voice came the demand side, which no major problems addressed a course towards 1.15.
On Wednesday, we do not have too much data on the economic calendar. Investors' attention will be paid to the underlying contract assets in the US. At the moment the market is not assumed interest rate hikes in September but good subsequent readings can awaken appetites, whereas the chance of a December hike.
The analysis for EUR / USD:
Despite the rapid pace of recent increases do not seem to demand led this week is re-test the level of 1.1712. On Wednesday in the first part of the day the market should consolidate above the 1.1465 level. Stronger traffic and determine the direction it should take place after the US data. For better data supply should lead to overcome support at 1.1465 and then forwards toward Tuesday's low at 1.1397.
Otherwise, worse reading of the US will support demand, which could lead to increases in the vicinity of 1,16-1,1620 level.
The increases may be limited in nature because of Thursday's and Friday's data, which may prove to be support for the dollar. On Thursday we will know the GDP of the US for the second quarter, while Friday data on consumer inflation in Spain and Germany.
On Wednesday, we do not have too much data on the economic calendar. Investors' attention will be paid to the underlying contract assets in the US. At the moment the market is not assumed interest rate hikes in September but good subsequent readings can awaken appetites, whereas the chance of a December hike.
The analysis for EUR / USD:
Despite the rapid pace of recent increases do not seem to demand led this week is re-test the level of 1.1712. On Wednesday in the first part of the day the market should consolidate above the 1.1465 level. Stronger traffic and determine the direction it should take place after the US data. For better data supply should lead to overcome support at 1.1465 and then forwards toward Tuesday's low at 1.1397.
Otherwise, worse reading of the US will support demand, which could lead to increases in the vicinity of 1,16-1,1620 level.
The increases may be limited in nature because of Thursday's and Friday's data, which may prove to be support for the dollar. On Thursday we will know the GDP of the US for the second quarter, while Friday data on consumer inflation in Spain and Germany.