EURUSD gives up 0.17 percent at 1.1190 a fresh monthly low, having hit the high during Asian session at 1.1209 and the low at 1.1183 a bit higher than the low from June 18th. With two important policy meetings the next days from ECB first and then from Fed, EURUSD traders will be very busy. Markets have already discounted a 25 basis points rate cut from Fed.
The pair broke below 1.12 and bears now are in control for the short term amid general USD strength and rising rumors of a government crisis in Italy that might lead to snap elections. Traders are waiting news from ECB about the next interest rate policy move that will drive the pair. As of writing sellers looks exhausted below 1.1190 and intraday traders will look for long positions at 1.1181 mark. The profit target can be placed at yesterday high around 1.1220 while stop loss must be activated at 1.1170. Bears looking for a break below 1.1181 to enter short position targeting the yearly low at 1.1106, stop loss orders in that case must be placed at 1.12.Don’t miss a beat! Follow us on Twitter.