On Monday, the currency pair EUR / USD remained below the important resistance level at 1.1129. Demand was not able to overcome this level even after weaker US data. New York manufacturing index was the worst since 2009 (-14.92 at market forecast 5.00). At the moment the currency pair is around the level of 1.1080, which is 38.2% Fibo level increases from 1.0857 to 1.1215).
In my opinion the situation on the currency pair has not changed. Investors' attention on Tuesday will be paid to data from the US, when we will see data on building permits. It should be noted that much better readings will increase expectations for interest rate hikes in September.
If the currency pair on Tuesday will remain below resistance at 1.1129, further declines are possible in the direction of 1,10-1,1035 (respectively 50% and 61.8% fibo recent increases). Naturally great support to maintain the downward trend will be any negative news on Greece.
Otherwise, if the demand will overcome resistance at 1.1129, we should see once again increases the level around 1.1215. First, however, the market will have to overcome Friday's high of 1.1189, which is the local resistance.
In my opinion, a variant of deepening correction in the vicinity of 1,10-1,1035 seems more likely.
In my opinion the situation on the currency pair has not changed. Investors' attention on Tuesday will be paid to data from the US, when we will see data on building permits. It should be noted that much better readings will increase expectations for interest rate hikes in September.
If the currency pair on Tuesday will remain below resistance at 1.1129, further declines are possible in the direction of 1,10-1,1035 (respectively 50% and 61.8% fibo recent increases). Naturally great support to maintain the downward trend will be any negative news on Greece.
Otherwise, if the demand will overcome resistance at 1.1129, we should see once again increases the level around 1.1215. First, however, the market will have to overcome Friday's high of 1.1189, which is the local resistance.
In my opinion, a variant of deepening correction in the vicinity of 1,10-1,1035 seems more likely.