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The euro currency has fallen to fresh monthly trading low against the US dollar during the European trading session, following more soft economic data from the German economy. If EURUSD sellers can break the 1.1107 level, the pair could easily fall towards the 1.1050 support level. Overall, only a move above the 1.1240 level can change the extremely bearish sentiment towards the EURUSD.

The EURUSD pair is heavily bearish while trading below the 1.1160 level, key support is found at the 1.1107 and 1.1050 levels.

If the EURUSD pair trades above the 1.1160 level, bulls could test back towards the 1.1200 and 1.1240 levels.

The euro declined ahead of the decision by the European Central Bank. The bank, which began its monetary policy meeting yesterday, is expected to leave interest rates unchanged. The bank is also expected to announce a new stimulus package that is aimed at boosting the European economy. This is after a series of weak data. Yesterday, the flash PMI data from the region confirmed that the inflation was indeed slowing down.

The Dow Jones Industrial Average declined yesterday after weak reports by companies like Boeing and Caterpillar. The index declined by almost 80 points after two of its key components delivered weak earnings. Boeing reported weak earnings and announced that it could be forced to stop more production of the 737-Max, which is its best-selling plane. Caterpillar announced reports that missed the consensus forecasts. The company blamed weaker sales in China and higher wages. While the Dow dropped, the S&P 500 and Nasdaq indices closed at record highs.

The Australian dollar declined after the RBA governor said that the low interest rates will stay. This statement came two weeks after the central bank decided to lower interest rates for the second consecutive month. Later today, the market will receive the unemployment rate in Spain, the German business expectations and climate for July, and the durable goods orders from the United States. The Labor Department will receive the initial jobless claims data. The earnings season will also continue, with key companies like 3M, ABB, Amazon, American Airlines, Anglo American, and Hershey expected to release their earnings.

US30

The Dow Jones Industrial Average ended the day lower after weak results from Boeing and Caterpillar. The index ended the day at $27315, which was above the day’s low of $27,207. On the hourly chart, the index is slightly above the 28-day and 14-day moving averages. The RSI rose slightly to the middle level of 50 while the accumulation/distribution indicator continued moving up. The index will likely move up to retest the previous high of $27,394 if 3M reports strong numbers.

EUR/USD

The EUR/USD pair declined ahead of the ECB decision. At the time of writing, the pair is trading at 1.1134, which is close to the lowest level in two months. On the hourly chart, the pair is trading below the 14-day and 28-day moving averages. The RSI has dropped to the oversold level, while the bears power remains below the oversold level. The pair will likely continue moving lower to the important support level of 1.1105.

AUD/USD

The AUD/USD pair dropped sharply after the dovish statement by Governor Lowe. The pair reached a low of 0.6943, which was the lowest level since July 11. The pair has been dropping since July 19th, when it reached a high of 0.7080. On the hourly chart below, the pair is below the 14-day and 28-day moving averages. The pair is slightly below the 38.2% Fibonacci Retracement level. The RSI remains close to the oversold level. The pair will likely continue moving lower to test the 23.6% Fibonacci level at 0.6950.

Yesterday, the GBP/USD exchange rate skyrocketed to the 1.2520 level and reversed south to the 1.2470 mark.

Note, that the rate is squeezed by the 55-hour moving average and the weekly PP, located at 1.2463 and 1.2492 respectively. Thus, the currency pair could trade sideways in the short term.

Also, note, that during today's morning, the pair was pressured by the 100– and 200-hour SMAs at 1.2477. Thus, if the given support does not hold, the British Pound could depreciate against the US Dollar. A possible downside target is the 1.2420/1.2440 range

On Wednesday, the USD/JPY currency pair traded sideways, trying to breach the support cluster formed by the 55-, 100– and 200-hour SMAs in the 107.96/108.14 range.

During Thursday's morning, the exchange rate still was testing the given support. If it holds, it is expected, that a reversal north could occur within the following trading hours, and the rate could reach the weekly R1 at 108.35.

Otherwise, it is likely, that the pair could go downwards. Note, that the pair could the support from the weekly and monthly PPs, located circa 107.80. If the given support does not, the rate could target the 107.60 level.

During the previous trading session, gold traded sideways against the US Dollar within the cluster formed by the 100– and 200-hour SMAs, located at 1,425.73 and 1,421.09 respectively.

During Thursday's morning, the XAU/USD exchange rate breached the given cluster north. It is expected, that some upside potential could prevail in the market in the short run. In this case, the rate could target the 1,435.00 level.

Otherwise, it is likely, that the rate could continue to trade sideways around the given moving averages. It is unlikely, that bears could prevail in the market, and the price for gold could drop lower than the 1,415.00 mark.

The single European currency depreciated about 53 base points against the Japanese Yen on Wednesday. The currency pair continued its downward momentum during the first half of today's trading session.

The exchange rate is gradually moving towards the weekly S2 at 120.11. If the weekly support level holds, a potential upside reversal could occur within this session.

On the other hand, if the currency exchange rate passes the weekly S2, bears are likely to drag the EUR/JPY pair further south until the end of this week's trading session.

The Australian Dollar maintained the junior descending channel pattern against the US Dollar on Wednesday. The currency pair traded near the bottom border of a descending channel pattern.

The exchange rate could make an upside reversal from a support cluster formed by the combination of the weekly and the monthly support levels at 0.6955 within this session.

If the AUD/USD currency exchange rate breaks this support lines, the next target for bearish traders would be at the 0.6940 area.

The US Dollar continued to trade sideways movement against the Canadian Dollar on Wednesday. The 50-hour simple moving average provided support for the currency pair during yesterday's trading session.

Given that the exchange rate had breached the 50-hour SMA, it is likely that bearish traders could drive the pair towards a support cluster formed by the weekly R1 and the 100-hour moving average at 1.3108 within this session.

If the support cluster holds, the USD/CAD currency exchange rate will continue its upside momentum until the end of this week trading sessions.

The New Zealand Dollar versus the US Dollar breached a significant support level at 0.6693 during the morning hours of Thursday's trading session.

Most likely, the exchange rate will continue its southern movement within this session. The closest support level is located near the weekly and the monthly S2 at 0.6643.

However, technical indicators flash strong buy signals on the daily time frame chart. Therefore, the currency pair could reverse from the current price level at 0.6687 and aim for the 0.6720 area today.

During Wednesday, the EUR/USD currency pair traded sideways round the psychological level at 1.1140. During today's morning, the pair was testing the 2018/2019 minimum at 1.1124.

If the given minimum holds, it is likely, that the exchange rate could reverse north. However, note, that the rate has to surpass the resistance level formed by the 55-hour SMA and the weekly S2 at 1.1152. If the given resistance holds, the pair could continue to consolidate.

If the given minimum does not hold, it is expected that the rate could decline to the weekly S3 at the 1.1103 mark. Also, note, that ECB Monetary Policy Statement data release could push the pair lower.