Major economic data is due for release today. German Zew economic sentiment, Zew economic sentiment and final CPI y/y are due today. The German Zew economic sentiment has been disappointing thought 3 months. Zew economic sentiment has been improving for 6 consecutive months. Greek issue remains the main focus of attention in the near term.
At yesterday’s session, the USD changed the direction and was trading higher against most major pears. Ahead of the FOMC meeting, the greenback managed to get away from lows.
Technical view:The pair started the new week with losses after five consecutive profitable weeks. We have already said the pair is likely to make the near-term top between 1.1480 and 1.1535. The pair rejected at 1.1467 and fell by 160 pips. At yesterday’s session, the pair managed to hold the 100Dema 1.1300. We recommended selling below 1.1390 with a target at 1.1300. The pair made a low exactly at our targets. At today’s Asian session, the pair was trading above the support level. Weekly support is found at 1.1130 20Wsma. In case the price closes below 1.1300, bears will aim at 20Wsma and the level of 1.1050 later. The 100Dsma is found at 1.1178. We expect fresh selling below 1.1300 towards 1.1200 and 1.1178 in the least case 1.1130 likely. Today we expect negative data on the euro. Intraday support is found at 1.1300, 1.1210, and 1.1190. Resistance is seen at 1.1326, 1.1360, and 1.1390. Use every rise to sell with sl 1.1390 and safe sell will trigger below 1.1300 with targets at 1.1210 and 1.1190.
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