The pair strongly rebounded from a 2-months low. This week, the pair wraps with major economic data.
The week started with major data on the German Ifo Business climate. June's readings standed at 107.4 points against the forecast of 108.2 points. The Gfk German consumer climate is due on Wednesday.
Recently, the S&P cut its outlook for the UK GDP growth in 2016 to 2.6 % (from 2.8%), but upgraded its outlook for the eurozone.
Technical view: The pair has been facing strong resistance at the 20Dsma and the 20Wsma is seen at 1.1020. A daily close above the 20Dsma ignites fresh momentum on the higher side. In this case, bulls will aim for 1.1100 and 1.1150 in the near future.
In the daily chart, the pair lost all moving averages. The nearest support is found at 10920 and strong resistance is seen at 1.1020.
The pair has been reaching lower lows and lower tops, falling below the lower end of the ascending trendline. We recommended fresh selling twice only below 1.0780 initially and 1.0720 later to be extend towards 1.0630, but not yet.
Intraday resistance is seen at 1.1020, 1.1050, and 1.1120. Support is found at 1.0960, 1.0920, and 1.0870. The trend favors buying with sl at 1.0850. Monthly support is found at 1.0730. In case the pair lost 1.0850, selling trade will get activated. The Federal Reserve and the ECB monetary policy differentiation favors longer bearish terms.
For today's session, risky buying is available above 1.0980, safe buying is expected above 1.1000 with immediate target at 1.1020, 1.1035,1.1050, 1.1080, and 1.1100. Selling is available below 1.0910 with targets at 1.0900 and 1.0860. Positional traders should use a dip to buy at 1.0900.
The material has been provided by InstaForex Company – www.instaforex.com