• 1.1278 is a strong resistance line
• 1.1150 remains fluid. It is a weak support and could break in the Monday session
Further levels in both directions:
•Below: 1.1150, 1.1054, 1.0925 and 1.0821
•Above: 1.1278, 1.1376 and 1.1467
•Current range: 1.1150 to 1.1278
EUR/USD ratio is unchanged on Monday, consistent with the lack of movement from EUR/USD. Currently, short positions have a strong majority (56%), indicative of trader bias towards EUR/USD breaking out and moving to lower levels.
The euro is showing limited movement on Monday, as EUR/USD trades at 1.1170. With French and Italian markets on holidays, we can expect an uneventful day from the pair. There are no Eurozone events on the schedule. Later in the day, the US will release the Empire State Manufacturing Index, with the indicator expected to improve to 2.1 points. Tuesday promises to be busier, with the release of German ZEW Economic Sentiment. The key indicator plunged in July by 6.8 points, reflecting market turmoil after the surprise Brexit vote in late June. Also on Tuesday, the US will release Building Permits and consumer inflation reports.