The beginning of the week is marked by correction of recent declines that took place last week. The demand has led to a break the first resistance level at 1.1286 (23.6% decline from the abolition of 1,1712-1,1155) and then on Tuesday, there was a failed attack on the resistance at 1.1368 (38.2% abolition recent declines). Maximum recorded only at the level of 1.1333. On the demand side weakness may be affected by several factors. First of all, remember that on Thursday Mario Draghi will take part in a press conference after the ECB meeting, which will present the current economic situation and present a macroeconomic projections. Another reason that restrict stronger growth is recent positive data from the US. Some investors counted on heavily hawks records at the next Fed meeting, which will take place on 17 September. In this case, we can assume that a rate hike should occur within the next 6 months.
On Wednesday in the second part of the day we will get data from the US, which may once again support the dollar. Investors will pay particular attention to the change in ADP non-farm employment (forecast 201K). In addition, we will also off-farm productivity, unit labor costs, factory orders and the Beige Book
The outlook for EUR / USD:
At the moment, all the time are in a correction of the recent declines. In the absence of data in the first part of the day, the demand can stand before another chance test resistance level at 1.1368 (38.2% recent abolition of inheritance). Then the game should turn to the supply side. However, if you happen to break above this level, the next resistance would look for in the area 1,1433-1,1465. (support for demand may be weaker data from the US).
In an alternative version, another unsuccessful attempt in demand for horizontal resistance at 1.1368, should lead to stronger declines. Great support for supply will be good data from the US. In this case, the pair again should be directed towards the level 1,1277-82. Another goal for the supply of a support level of 1.1202 and 1.1179.
On Wednesday in the second part of the day we will get data from the US, which may once again support the dollar. Investors will pay particular attention to the change in ADP non-farm employment (forecast 201K). In addition, we will also off-farm productivity, unit labor costs, factory orders and the Beige Book
The outlook for EUR / USD:
At the moment, all the time are in a correction of the recent declines. In the absence of data in the first part of the day, the demand can stand before another chance test resistance level at 1.1368 (38.2% recent abolition of inheritance). Then the game should turn to the supply side. However, if you happen to break above this level, the next resistance would look for in the area 1,1433-1,1465. (support for demand may be weaker data from the US).
In an alternative version, another unsuccessful attempt in demand for horizontal resistance at 1.1368, should lead to stronger declines. Great support for supply will be good data from the US. In this case, the pair again should be directed towards the level 1,1277-82. Another goal for the supply of a support level of 1.1202 and 1.1179.