Although there are conditions for a rebound in the euro, the market opened a new trading week with stagnation. Notably, the pound sterling managed to show a local correction on Friday. The euro came to a standstill amid the migrant crisis at the Belarus-Poland border. It is really positive news that announcements made on Thursday and Friday failed to worsen the situation. Officials’ have become more restrained with no one talking about sanctions and threatening to cut off gas supplies to Europe. Nevertheless, the conflict is far from resolved. That is why the euro is under significant pressure. Notably, the currency remains afloat regardless of the conflict. It means that investors do not foresee the US dollar to rise further. Thus, once the political issue is settled, the euro is likely to surge. Let us take a look at the trading charts. Last week, the euro lost over 160 pips against the greenback. It is a sharp change in a short period of time. Sellers have already passed several important price levels, while speculators continue pushing the price lower. At the moment, the pair is hovering near the local low of 2021. The reading of 1.1430 is acting as a support level. If the price consolidates above 1.1470, a rebound could be replaced by a full-fledged correction. In this case, the euro/dollar pair may climb to 1.1500-1.1530. If the price fixes below 1.1400 on the four-hour chart, the price is likely to resume falling. Meanwhile, the pound/dollar pair began increasing after a rapid drop. The level of 1.3350 is acting as support. Although the market sentiment has changed, the downward movement that started in early June remains the main trend. Against this background, traders have chosen an approach to trade corrections, but the bearish sentiment still prevails in the market. That is why the price decline below 1.3400 is likely to lead to a rise in the volume of short positions. In this case, the pound/dollar pair may slide to a new local low.

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