Technical analysis of EUR/USD for July 24, 2015 Market Analysis Review

The euro managed to give a technical bounce despite strong data from the US labor market, but rejected at 20Dsma.

Spanish employment posted an increase of 411,800 in this quarter compared with the first quarter (2.36%), totaling 17,866,500 employed persons.

Today is a big day in the context of PMI data. Data on French, German, and euro flash manufacturing and flash services is due.

Besides, the US flash manufacturing PMI and new home sales are expected to be unveiled.

Recently, the S&P lowered the British GDP growth forecast for 2015 to 2.6 % (previously expected growth of 2.8%), but raised its forecast for the eurozone's GDP.

Technical view:In the daily chart, the pair lost all moving averages. The nearest support is found at 1.0785. The 20Wsma is seen at 1.1020.

The pair has been reaching lower lows and lower tops, falling below the lower end of the ascending trendline. Twice we recommend fresh selling only below 1.0780 with an initial target at 1.0720 and later at 1.0630, but it is not triggered yet.

Then is the first time in 10 days when the pair reached a higher high in the H1 chart. At yesterday's session, the pair found support at the previous swing high of 1.0870 breaching the earlier hourly double top indicating that bullish near-term momentum is back on track. Intraday resistance is seen at 1.1020, 1.1050, and 1.1120. Support is found at 1.0960, 1.0920 and 1.0870. The trend favors buying with sl at 1.0850. Monthly support is found at 1.0730. In case the pair lost the 1.0850 again, selling trade gets activated. The Federal Reserve and the ECB monetary policy differentiation favors bears in the long term.

At yesterday's session we advised buying above 1.0970 with small targets at 1.1000 and 1.1020.

For today's session, buying is available above 1.1020 with small targets at 1.1035, 1.1050, 1.1080, and 1.1100. Use a dip to buy at 1.0900.

The material has been provided by InstaForex Company - www.instaforex.com

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