EURUSD: everything is going according to plan

The EURUSD pair posted gains on Monday. The price action started at 1.1770, then after a short-term decline to 1.1763, the pair reversed course and headed north. By the beginning of the North American session, the euro reached 1.1817, cautiously testing the upper bound of a descending channel, from which it corrected to 1.1803 by the close.

Yesterday, Germany’s Ifo Institute released weak July data. Business optimism, current conditions and economic expectations came in below the median forecast. Nonetheless, all gauges held above the 100 mark that indicates positive performance of the country's economy. Macro data was also sluggish stateside. New home sales in June increased by 676k MoM, falling short of the consensus figure that called for 800k.

On Tuesday, EURUSD has been on a downward trajectory, moving from the upper to the lower bound of a descending channel. By 8:30 GMT, the pair dropped to 1.1775. The next downside target is 1.1751.

A slew of US macro will be released today before the opening of the North American session. The highlights include June durable goods and capital goods orders.