The euro rebounded a bit from a 3-week low. Developments in Greece initially supported the euro in US session. The German and Belgium data reads mild positive.
German consumer climate increased slightly again. Developments in consumer mood in Germany have not been uniform in May. After 10.1 points in May 2015, the overall indicator is forecasted to hit the level of 10.2 points in June. The National Bank of Belgium’s business barometer rose further in May, posting an increase for the fourth consecutive month.
Today, the trend is likely to depend on the US data. Unemployment claims and pending home sales m/m are due. We expect positive readings from the US.
Technical view: The par managed to hold the parallel support at 1.0820, a low was made at 1.0819. The pair managed to closed with mild gains, paused the 3-days losing streak. The bearish still continues. The pair has been facing strong resistance at 1.0911 for 10 hours. Intraday resistance is seen at 1.0927.The safe small buying will trigger above 1.0930 for a small target at 1.0960. Strong bullish momentum is seen only above 1.0970, where the 1.0965 50Dsma lies. In case bulls manage to sustain above 1.0970, they will aim at 1.1000, 1.1030, and 1.1050. Intraday support is found at 1.0860, 1.0820, and 1.0800. At Asian session, the pair is trading at 1.0893 compared to Wednesday’s closing price of 1.0904. The pair gave a bearish break earlier and closed below the ascending trendline. Sell on a rise. Bulls’ last hope remains at 1.0820 and 1.0800. Intraday selling is available below 1.0860 to 1.0820 and 1.0800. The panic will be triggered below 1.0800. We expect another 150 and 250 pips down. Each spike added to be on the selling side. More room is available for bears. Use every rise to sell with sl 1.1070 on a closing basis. We forecasted 1.0800 this week and 1.0550 later. The first part of our forecast (1.0819) is already done.
Selling below 1.0860
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