The Greek factor influenced the pair at yesterday's session. The recent US retail sales data is likely to change the texture of the Fed. The IMF said negations with Greece failed to make development on a debt deal.
The French employment stabilized in Q1 2015. In Q1 2015, payroll employment in non-farm market sectors remained virtually stable (-700 jobs) after an increase in the previous quarter ( 0.1%, 19,200 jobs). The French consumer price index increased by 0.2% in May 2015 on a monthly basis and by 0.3% year-on-year.
Today traders eye US PPI and prelim consumer sentiment data. The PPI readings were negative for a while. The producer price index fell for the third time this year. The readings showed an uptick of 0.2%. We expect PPI to shift towards an expand of0.4%.
Technical analysis: The euro fell 1.3% in the intraday chart, but the end of the day managed to erases half of the losses. The pair rejected a 3-week high trading at 1.1249 compared to Thursday's close. The pair fell below 100Dema, but managed to close above that. We forecasted yesterday, bulls must close above 1.1400 this week to maintain bullish targets at 1.1540 and 1.1700. If not, the pattern is likely to turned double top aimed at 1.1040 and 1.0900 again.
Intraday resistance is seen at 1.1285 and 1.1325. Intraday support is found at 1.1200 and 1.1150. The selling pressure accelerates below 1.1150 towards 1.1115 and 1.1090. Bulls loom at 1.1290 with targets at 1.1320 and 1.1360. If the pair closes above 1.1400 today, bulls are likely to extend 1.1500/1.1540 in a day or two.
On the down side, key levels to hold are at 1.1125, 1.1050, and 1.1035.
In the H1 chart, lower low pattern was formed; a higher low still exists in the H4 and the daily chart. It represents one more head available on the higher side to retest 1.1400. The long-term report indicated sellers struck generating shorts below 1.1050 and 1.1000.
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