The currency pair decreased after the yesterday’s massive drop, but this bounce back could be only temporary if the if the dollar index will slide further in the upcoming period. Price has touched the 0.9440 long term support, technically we may have a rebound on the short term, but the rate remains under massive selling pressure.
Right now is better to stay away from this pair because we don’t have any trading opportunity, only an accumulation movement will announce a potential upside movement. Continues to move sideways on the long term, the 0.9440 represents the sideways movement downside line.
Price increased as the USDX increased as well a little today, unfortunately the US data continues to come in mixed and fails to boost the greenback. The US existing Home Sales dropped from 5.62M to 5.52M in June, the indicator has come much below the 5.59M estimate, while the Flash Services PMI remains on hold at 54.2 points for the second month in July. The Flash Manufacturing PMI increased from 52.0 to 53.2 points, beating the 52.3 estimate.
Could rebound if will fail to close on the 0.9440 major static support, you can see that we had a false breakdown below this level in the yesterday’s session.
I hard to say that we’ll have another leg higher from this level, that’s why we have to stay away right now till we’ll have a fresh trading signal.
