Euro data will dominate the sentiment tonight (assuming China do not act again today in Asia). The combinatin of inflation data, Q1 GDD for German and the Greek bailout vote will likely take the helm over the US data and be a key driver for USD and Euro crosses.
The swing low of 5th August was the third touch of a potential trendline. However due to the nature of the connecting swings and slope I would consider this a sloping support level as opposed to a trend (and a support level which is pending an eventual downside break).
At NY close EURUSD produced a Hanging Man Reversal and forms the 2-day pattern, Bearish Harami. As long as we remain below 1.1217 high then a break below 1.10 confirms this pattern and we can assume a corrective high has been at wave equallity (100% projection). However a break above this week's high assumes the 1.128-30 resistance zone is on the cards.
The USD Index is clearly on the back foot and could have further to dip, which will also provide support for EURUSD. The next support zone is around 95.51-86. However as yesterday's high has already respected 96.28 resistance then we could be targetting the lower level of 95.51
Euro traders focus on inflation and Greek bailout vote
The USD weakness I had suspected on Monday has been seen, and consequently Euro has been sent higher by a combination of weaker Greenback and talks coming to a head in Greece. Traders are now to focus on Eurozone inflation, German GDP and Greek bailout vote today.