Demand pierced today, resistance at 1.0969 and headed toward the level 1,10-1,1013 (50% fibo recent declines 1,1218-1,0808). Then we met a very good US data that strengthened the dollar. The supply, however, could not once again use sytacji and ultimately led to stronger declines below the level of 1.0969. At the moment EUR / USD hovers around the 1.10 level.
Economic calendar for Friday:
9:00 EUR PMI industry in France (Jul)
9:00 EUR PMI for services in France (Jul)
9:30 EUR PMI for manufacturing in Germany (Jul) 9:30 EUR PMI for services in Germany (Jul)
10:00 EUR PMI manufacturing index (Jul)
10:00 EUR Aggregate index by Markit PMI (Jul)
10:00 EUR PMI services (Jul)
15:45 USD index PMI (Jul)
16:00 USD New Home Sales (m / m) (Jun)
16:00 USD Sales of new real estate (Jun)
Tomorrow we have a rash on your calendar date. Investors with a great attention will track the PMI for manufacturing in Germany, Which is Considered a leading indicator of prosperity. The market will certainly have in mind the data on sales of new real estate in the US That can enter the last good readings and Increase the pressure and expectations about interest rate hikes.
Forecast for Friday:
Today we overcame the level of 1.0969 and further despite better readings from the US, the market managed to maintain the currency pair above this level in the vicinity of 1.10. Corrective movement had already rejected half of the decline from the level of 1,1218-1,0808. What does this mean? From a technical point of view, there should be another wave of growth. Therefore, there is a chance to attack and test the level of 1,1061-65 (61.8% fibo recent declines 1,1218-1,0808). In my opinion, the level of 1.1065 seems to aim maximum, if growth is to be only a correction. If the market breaks the resistance at 1.1065 is next target is resistance at 1.1120. Keep in mind that tomorrow we have a large amount of data that may materially affect the exchange rate of a currency pair discussed. Keep in mind that positive data from Europe and the worse the US will strengthen the euro .
In the case of inheritance must reckon with a permanent crease 1.0969 level and subsequently falls towards the 1.0916 level. Support for supply will be worse data from Europe and better with the United States.