The euro has been making use of the dollar weakness for the recent three days. The pair closed above 20Dsma, but was rejected from 100Dsma at yesterday’s session.
Upcoming events: Today, traders eye German ZEW economic sentiment. The index fell 29.7 in July far below expectations. In the past 6 months, the reading has been below a forecast. This week’s main event is GDP data.
Besides, US Prelim unit labour cost q/q is due. For each of the two previous quarters, the readings surpassed expectations. This time, we expect neutral readings or below expectations.
The pair closed and traded below 20Wsma, which is set at 1.1050. The weekly support is found at 1.0840 and 1.0800. Weekly resistance seems at 1.1050.
At yesterday’s session, the pair was rejected from 20Wsma, which was set at 1.1050 and 10Dsma at 1.1040. If bulls manage to sustain above these levels, they aim at 1.1090 or even higher at 1.1120.
On the daily chart, the pair managed to close above 20Dsma at Friday’s session after 8 days trading at 1.0940. Except 20Dsma, the pair lost all the daily moving averages, it proves that its strength was sapped.
Intraday: Intraday support is seen at 1.1000, 1.0950, and 1.0920. Resistance seems at 1.1050,.1090, and 1.1130. The pair is trading at 1.1020 at today’s Asian session.
Intraday’s selling pressure is likely to be below 1.0940. The pair could accelerate below 1.0920 aiming at 1.0880,1.0860, and 1.0810.
Buying available above 1.1030 aims at 1.1050, 1.1060, and 1.1090. In the extreme case, 1.1120 is possible.
Review: Yesterday, we advised that «buying is available above 1.0970 with targets at 1.0985 and 1.1000, in the extreme case 1.1020 is possible». The pair made a high at 1.1042.
The hourly momentum indicators are signalling the pair is overbought. The trend favours buying with sl 1.0920. Bulls will regain strength only above 1.1130.
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