The pair stopped its two-day fall closing with mild gains. The Spanish services PMI helped the pair to rebound.
IMPACT OF EURO: The rate of job creation hit an eight-year high. The Spanish services sector started the third quarter in the positive territory as rates of expansion in new orders and business activity accelerated in July.
The headline seasonally adjusted Business Activity Index rose to 59.7 in July from 56.1, posting best readings in three months and pointing to a further strong increase in the services sector activity.
Upcoming event: Traders eye German factory orders. Germany has been providing inconsistent data, dismissal data in May. This was the first decline in 3 months. This time, we expect positive readings.
Technical view: The pair lost all moving averages in the daily, weekly, and monthly charts. The nearest resistance is seen at 1.0960 20Dsma , 1.1030 100Dsma, and 1.1050 20Wsma. Until the pair closes below 20Wsma, sell on rises. The pair has been closing below 20Wsma at 1.1050 for three consecutive weeks. Monthly support is found at 1.0730.
In the four-hour chart, the pair has been trading in an ascending bearish channel, rejected at the upper end of the trendline willing to go further down.
Intraday- resistance is seen at 1.0930, 1.0950, and 1.0990. Support is found at 1.0840, 1.0810, and 1.0790. Buying is available only above 1.1000, safe buying is available only above 1.1060 towards 1.1100. Selling is available below 1.0880 with an initial target at 1.0850. Below the level of 1.0840, it is likely to extend lows towards 1.0810 and even 1.0790.
Bulls will be back on track only above 1.1130. Until that, use every spike to sell.
The material has been provided by InstaForex Company – www.instaforex.com