The pair extended falling below the level of 1.0900 for the second day as well . The ECB statement dominated by Greece.
The Eurogroup calls on the Greek authorities to swiftly adopt the second set of measures by July 22 as foreseen in the Euro Summit statement, and update the legislation related to the first set of measures consistent with the recommendations made by the institutions in their compliance report.
US unemployment claims fell last week. In the week ended July 11, an advancde figure for seasonally adjusted initial claims was 281,000 showing a 15,000 decrease from the previous week’s revised level.
Today, traders eye US data. Building permits, CPI, and Prelim consumer sentiment are due. We expect positive readings for consumer sentiment and building permits.
Technical view: At yesterday’s session we forecast that the pair would hit a low of 1.0860. We recommended to sell on a rise with a target at 1.0720 for a while, and we still recommend this.
In the daily chart, the pair lost all moving averages. After 7 days of consolidation at 100Dsma, it finally closed below that level the other day. The parallel support is found at 1.0820. The 20Wsma ia seen at 1.1015.
The hourly momentum oscillators indicates the extremely oversold market. Amid lack of data on the euro, US data remains in control of today’s trade . We are expecting positive readings. Fresh selling is expected below yesterday’s low aiming for 1.0820 and 1.0790. The panic is likely to be triggered below 1.0790 towards my earlier initial target at 1.0720.
Intraday resistance is seen at 1.0900, 1.0940, and 1.0970. Support is found at 1.0856, 1.0820, and 1.0790.
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