The beginning of the week was unremarkable. The market was recovering after rally on Friday. Currencies consolidated in narrow ranges. Today China has published the data on inflation. Although they were worse than expected, still, the market practically ignored them. No significant events are planned for today, news background is almost empty, except several secondary reports. There is a risk that one more day will pass without notable movements in the market. Herewith dollar bulls retain the initiative.
EURUSD pair retains opportunities for downward breakthrough of the level 1.0700. Herewith short-term technical indicators have entered oversold areas again, what gives signals of probable close correction. The range 1.0610 – 1.0640 seems the best for short positions fixation in current situation, still the pair might not reach these levels. Therefore, below 1.0700 we recommend considering closure of short positions.
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