Today we met mixed data from the Euro-zone, which in a sense has helped the supply side. (Very good fell fell PMI manufacturing index in Germany, which rose to 52.1 points. Also, the indicator for the industry in Italy got the better of 53.8 points. But on the other side found himself PMI for France, who dived to 48 points and the PMI for manufacturing in Spain at 54.2 pkt. PMI in the euro zone was slightly better than market consensus and was 52 points). Minimum seen at 1.1122, but the rest of the day rate moved around the level of 1.1140, which is 23.6% Fibo unbearable.
Economic Calendar for Tuesday: 9:00 EUR change in the unemployment rate in Spain 14:30 USD Trade Balance 15:45 USD Aggregate according to Markit PMI 15:45 USD PMI index for services 16:00 USD ISM index for services dot. Employment 16:00 USD ISM index for services
Forecast for Tuesday: According to yesterday's forecast declines we saw today, which should also motivate the supply side tomorrow. Currently, technical analysis allows for further declines after the recent strong rally. At the moment, we are in a fairly interesting situation, so the exchange rate reached the lower limit of channel growth and its breakdown should lead to a strong euro sell-off. In this case, the aim should be 1,1034-50 area. Tomorrow we will know the ISM index for services in the US. Any better readings will support the dollar, as will boost expectations about interest rate hikes by the Fed. Similarly, growth can occur if the data will be much worse. In this case, once again we will test today's maximum. Please note that if you arrive in the vicinity of 1,1034-50 and will support further declines, there is a risk that further increases will be at risk. In this case, the dollar will strengthen in the medium term and the current increases at around 1.1289 may be considered finished. Note: carefully track the behavior of a currency pair at a level of support 1,1034-50. The preferred option remains the option of filling drops downward at around 1.1034.