The euro slowly but persistently breaks the main scenario, which implies a price decline to 1.1190 and further towards 1.1110. Of course, to grow in price, a lot needs to be done – on the daily chart, three resistance lines can be overcome, the top of which – the Krusenstern line – is at around 1.1505. But the proximity of all three resistances raises the likelihood of this bullish scenario, so they can be overcome in 1-2 days. The immediate goal of growth in this case may be at least on July 19 at 1.1575.
But the main scenario is not canceled, and it is easier to implement it from the technical side – the price needs to overcome the support of the Krusenstern line at 1.1370, and then the target of 1.1190 opens again. If today’s macroeconomic data fails, the likelihood of the main scenario will increase. The business activity index in the services sector (Services PMI) in Germany in November is projected to decrease from 54.7 to 54.6, Services PMI of the euro area is also expected to decline from 53.7 to 53.6, Germany’s GDP in the final estimate for the 3rd quarter expected to be unchanged, -0.3%. In the USA, on the contrary, Manufacturing PMI and Services PMI for November are expected to rise from 55.7 to 55.8 and from 54.8 to 55.0, respectively.
The material has been provided by InstaForex Company – www.instaforex.com
EUR/USD
The euro slowly but persistently breaks the main scenario, which implies a price decline to 1.1190 and further towards 1.1110. Of course, to grow in price, a lot needs to be done – on the daily chart, three resistance lines can be overcome, the top of which – the Krusenstern line – is at around 1.1505. But the proximity of all three resistances raises the likelihood of this bullish scenario, so they can be overcome in 1-2 days. The immediate goal of growth in this case may be at least on July 19 at 1.1575.
But the main scenario is not canceled, and it is easier to implement it from the technical side – the price needs to overcome the support of the Krusenstern line at 1.1370, and then the target of 1.1190 opens again. If today’s macroeconomic data fails, the likelihood of the main scenario will increase. The business activity index in the services sector (Services PMI) in Germany in November is projected to decrease from 54.7 to 54.6, Services PMI of the euro area is also expected to decline from 53.7 to 53.6, Germany’s GDP in the final estimate for the 3rd quarter expected to be unchanged, -0.3%. In the USA, on the contrary, Manufacturing PMI and Services PMI for November are expected to rise from 55.7 to 55.8 and from 54.8 to 55.0, respectively.
The material has been provided by InstaForex Company – www.instaforex.com
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