EURUSD rejected for one more day at 1.1220 the 100 day moving average. ECB’s economic bulletin following its July policy meeting notes that data and survey information point to somewhat weaker EU growth in the next quarters and the drop in Q2 global services output PMI increases the risk of more broad-based deterioration in the global growth outlook.
In the hourly chart the bulls now are in control as the pair trades above all major hourly moving averages. The pair during the early European session broke below the previous week low at 1.1161 but managed to rebound abound the 1.12 mark. The pair has established a trading range between 1.1170 and 1.1220 with buyers and sellers balanced.
Intraday traders might initiate a long position if the pair manages to break above the 1.1220 top targeting the 1.1294 level where the 200 day moving average crosses. A stop loss to 1.12 must also be placed for reducing the downside risk as that will signal the return to the lower band of the trading range.
A short position targeting below 1.11 mark can initiated if the pair cross below 1.12 targeting today’s low at 1.1161, with a stop loss order at 1.1220. In the case EURUSD breaks below 1.11 the downward move will accelerate down to 1.1026 yearly low and then at 1.0950.Don’t miss a beat! Follow us on Telegram and Twitter.