ECB left rates unchanged as expected. US President Donald Trump and European Commission President Jean-Claude Juncker have announced that the eurozone and the US will launch a new round of trade negotiations. 10Y rates spreads suggests investors have positioned for a possible policy twist from the BoJ at the 31 July meeting.
Trading within a symmetrical triangle. As shown in the chart the market is targeting the major support (area @ 1.1580/1.1550. If the support held then we would see a rebound to the 1.1750 resistance area. However, if market successfully broke the pattern then our target will be 1.1250.
Declining channel still valid. The pair failed to break the upper band of the shown channel, which increased the selling pressure on the pair. Market now will target the support area at 1.2920/1.2880.
Renewed buying momentum. The 50-days SMA hold and we see a bullish signal. The next resistance will be at 112.20/112.50. However, an close below 110.50 hen the downside risk would be increased and the drop will be toward 109.30.
The risk to break the support at 1212 is high. If the break occurred this would trigger a drop toward 1205/1198.
The bias remains bullish, has a target at 71.10. However, a move and close below 68.20 would signal a more of drop toward 65.
Bullish bias above 17,750 and markets now will target 13,000s levels.
As Long as the resistance at 25,720 is not broken, the risk to move back toward 25,180 remains high.