EUR/USD

After the FOMC meeting the euro extended losses against the greenback yesterday, closing at the lowest level in last 2 sessions.

IMPACT ON EURO:

IMF officials: The IMF and Greece did not reach an agreement on a new debt plan. Greece and Europe are ready to make the relevant decisions, but they need time. The IMF officials can only support a comprehensive rescue package for Greece. IMF Board of Directors authorized to discuss arrangements for the new Greek aid plan on Wednesday.

IMPACT ON USD:

The US GDP value, adjusted for price changes increased at an annual rate of 2.3 % in the second quarter of 2015, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, the real GDP increased 0.6 percent (revised).

In the week ending July 25, the advance figure for seasonally adjusted initial claims was 267,000, an increase of 12,000 from the previous week.

Today, traders eye German retail sales, eurozone's CPI flash estimates y/y, and unemployment rate.

Technical view: The euro bulls lost momentum, rejected at 50Dsma for three times earlier and closed below the 20Dsma at yesterday's session rejected at 20Dsma.

In the four-hour chart, the pair has been trading in an ascending bearish channel, rejected at the upper end of the trendline willing to go further down.

Until the pair trades below 1.1085 sell on rise favors the intraday trade. The supply zone remains between 1.1085 and 1.1100 50Dsma. Until the price closes below 1.1100 sell on rise favors the positional trade. Monthly support is found at 1.0730.

Intraday resistance is seen at 1.0950, 1.0980 and 1.1000. Support is found at 1.0869,1.0840, and 1.0800. In cas the pair lose 1.0850, selling will accelerate. The Federal Reserve and the ECB monetary policy differentiation favours longer term bearish.

Intraday selling is available below 1.0890 with targets at 1.0860, selling accelerates below 1.0850.