Over the last 24 hours, the EURUSD pair has seen a 40-pip correction; from 1.1717 to 1.1677. I'd like to note that yesterday there was no important macroeconomic data, nor any important economic events that could significantly affect major currency pairs. I'm assuming that financial participants will take a wait-and-see position before the ECB monetary policy meeting on Thursday, the 26th of July. Therefore, I do not expect any radical changes in major currency pairs in the next two days.
Today, very useful Forex trading indicators will be published for the eurozone, UK, and US.
- 11:00 Eurozone: Markit manufacturing PMI (Jul), Markit services PMI (Jul).
- 13:00 UK: CBI industrial trends survey - orders (MoM) (Jul).
- 16:45 US: Markit manufacturing PMI (Jul), Markit services (Jul).
On the hourly timeframe (H1), the EURUSD pair is attempting to return to the potential downwards trend.
I believe sentiment on the EURUSD pair is bearish (H1), and although it has weakened, it still persists. This is evidenced by the fact that the last high ("Max 2" on the chart) could not reach the previous high ("Max 1" on the chart). Therefore, I reckon that the pressure on the euro from the dollar will continue. Even if the euro suddently starts to rise against the dollar, I believe that the solid level of resistance for the EURUSD pair will be the 1.1824 mark, as I mentioned yesterday.