Ahead of the FOMC meeting, the USD is under pressure. Investors took profits on recent dollar's gains.
The Ifo Business Climate Index for the German trade and industry rose to 108.0 points in July from 107.5 points last month. Assessments of the current business situation improved significantly after last month's setback. Business expectations were also somewhat more optimistic after declining for three consecutive months.
Technical view: At yesterday's session, the pair managed to close above the 20Dsma, but rejected at 50Dsma.
The pair has been reaching lower lows and lower highs, falling below the lower end of the ascending trendline. Twice, we recommend fresh selling only below 1.0780 with a yarget at 1.0720 and later at 1.0630, but not yet.
Intraday resistance is seen at 1.1100, 1.1130, and 1.1170. Support is found at 1.1080, 1.1050, and 1.1000. We have been advising buying with sl at 1.0850 now moving to 1.0925. Monthly support is found at 1.0730. In case the pair lost 1.0850 again, selling will get activated. The Federal Reserve and the ECB monetary policy differentiation favors long-term bearish scenario.
At yesterday's session, we advised buying above 1.0980 with targets at 1.1020, 1.1035, 1.1050, 1.1080, and 1.1100. The pair reached a high at 1.1129. Exactly, the pair faced resistance at the descending upper trendline. In case bulls take out 1.1225, they will reache 1.1300 in the near term.
oday, the pair is likely to skyrocket to the levels of 1.1150 and 1.1170. Traders can use a dip to buy this week.
The material has been provided by InstaForex Company – www.instaforex.com