The EUR / USD is starting a new trading week in the area of Friday's lows, remaining under strong pressure from the dollar. Strengthening of the US currency contributed to a sudden very good data on the increase in the number of people employed in non-agricultural sector, against which many investors revised their expectations for further Fed action to mitigate the monetary policy.
But despite Friday's market reaction, many experts still believe that the regulator can reduce the level of interest rates in the coming months, against the background of the impact of domestic economic factors (moderate growth of average wages, insufficient level of inflation and the slowdown in economic activity) and the continuing tension in international trade. Serious pressure on the Fed continues to Donald Trump, who over the weekend once again criticized the Fed's policy. Therefore, the medium-term prospects of the dollar remains quite uncertain. In this vein, essential for trading in the current week will be minutes from the last FOMC meeting and the speech of the Fed in the US Congress.
The European currency locally pressure comes news from Greece, where, according to the results of previous pre-term parliamentary elections, gaining a majority center-right party "New Democracy". According to preliminary data of the party gaining 39.6% of the vote. Party "Syriza", led by the current Prime Minister Alexis Tsipras, gaining 31.6%.
On the EUR / USD chart on Friday there was a breakdown of the lower border of the rising price channel, which was the signal for us to further the development of the bearish wave towards level of 1.1200. As you can see, the goal has not been achieved, so now waiting for reduction of quotations EUR / USD to 1.1200, where the local reversal formation may be formed.
resistance levels EUR / USD: 1.1230, 1.1265, 1.1290.
Levels of support for EUR / USD: 1.1250, 1.1200, 1.1130.
The main scenario - reduction of EUR / USD to 1.1200.
Alternative Scenario - consolidation above 1.1230 and rising EUR / USD to 1.1265.
Locally, the market is still dominated by bearish news background, so intra-day preference we return sales tool EUR / USD, which is best seen after the formation of a strong recoil motion in the area of 1.1265.
EUR / USD Fundamental Analysis Today FORTFS