On Monday, the euro was trading in the range of 1.1200/45, limited support for the daily MACD line and the price channel line. Now the euro is facing a choice - to increase the correctional growth to the MACD line on H4 to the price of 1.1283, or to go out of range downward to the Fibonacci level on daily 110.0% (1.1156) as an intermediate goal of a deeper decline (1.1075).
Today, the expected macroeconomic indicators are not in favor of the euro. Eurozone's trade balance for April is expected to decrease from 17.9 billion euros to 16.4 billion, the ZEW eurozone business sentiment index for the current month may drop from -1.6 to -3.6. In the United States, the number of permits issued for the construction of a new house in May is projected at 1.30 million against 1.29 million in April; the number of bookmarks for new houses is projected at the level of the previous period of 1.24 million.
As a result, we are waiting for the price to fall below the level of 1.1200 so that tomorrow, on the decision of the Fed to lower rates at a slow pace, to strengthen the decline.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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