EURUSD Consolidates Around 1.12
EURUSD consolidates the recent rally, but faces resistance at 1.1238 the 50 day moving average. Bank of France July industry sentiment indicator came in at 95 below expectations of 96. ECB’s economic bulletin following its July policy meeting notes that data and survey information point to somewhat weaker EU growth in the next quarters and the dDrop in Q2 global services output PMI increases the risk of more broad-based deterioration in the global growth outlook.
In the hourly chart the bulls now are in control as the pair trades above all major hourly moving averages. The pair tested the 50 hour moving average at 1.12 during the Asian trading session and managed to rebound. Intraday traders might initiate a long position targeting the 1.1249 daily high. A stop loss to 1.1179 at the 100 hour moving average must also be placed for reducing the downside risk as that will signal the return to the downtrend channel.
A short position targeting below 1.11 mark can initiated if the pair cross below 1.1146 the 200 hour moving average, with a stop loss order at 1.1167. In the case EURUSD breaks below 1.11 the downward move will accelerate down to 1.1026 yearly low and then at 1.0950.