According to yesterday's forecast, the market has led to a small correction of recent declines. Resistance level of 1.08 was not broken at night, allowing the supply to push the exchange rate towards support at 1.0718. Unfortunately, the market could not break this level today and additionally surprisingly worse US data, allowed the demand for another attempt to attack the resistance level of 1.08. Worse data from the US move away in time, expectations about interest rates in the United States. However, keep in mind that the US economy still has a better than Europe. This should translate into a strengthening of the dollar against the euro.
Economic Calendar for Thursday:
Thursday:
Eurozone: the minutes of the meeting of the ECB
US: ascendant declared to the unemployed, the trade balance and the contract factories
Forecast for Thursday:
All the time the preferred option remains a strong downward trend that began after breaking the upward channel bottom (1,0456-1,1052). At the moment remains strong resistance level of 1.08, and if it is not broken should lead to further declines. For me they are the preferred option and the defense drops 1.08 by supply. Note, however, that on Friday there will be data on changes in employment in non-agricultural sector, and data on the unemployment rate in the US, the market will have tomorrow in mind.
The single currency, the EU is under pressure from the poor condition of the European economy, the QE program and the expectations of the market, which implies an increase in interest rates as early as the middle of 2015.
The market is currently in a consolidation, which should allow for a new test level of 1.08 and 1.07. Ultimately, however, the supply should cross the 1.07 level and the goal should be to support at 1.0620
The alternative version of the demand fail to overcome the resistance at 1.08, which hangs at the time of the next drop. But according to me it is a less likely option.
Economic Calendar for Thursday:
Thursday:
Eurozone: the minutes of the meeting of the ECB
US: ascendant declared to the unemployed, the trade balance and the contract factories
Forecast for Thursday:
All the time the preferred option remains a strong downward trend that began after breaking the upward channel bottom (1,0456-1,1052). At the moment remains strong resistance level of 1.08, and if it is not broken should lead to further declines. For me they are the preferred option and the defense drops 1.08 by supply. Note, however, that on Friday there will be data on changes in employment in non-agricultural sector, and data on the unemployment rate in the US, the market will have tomorrow in mind.
The single currency, the EU is under pressure from the poor condition of the European economy, the QE program and the expectations of the market, which implies an increase in interest rates as early as the middle of 2015.
The market is currently in a consolidation, which should allow for a new test level of 1.08 and 1.07. Ultimately, however, the supply should cross the 1.07 level and the goal should be to support at 1.0620
The alternative version of the demand fail to overcome the resistance at 1.08, which hangs at the time of the next drop. But according to me it is a less likely option.