On Wednesday the pair traded in the narrow channel of 1.1154-1.1234. The market was under pressure expecting resolution of the Greek issue. Business climate index IFO in Germany fell by 1.1% in June due to probability of default of Greece and its exit from EU. Final data on the US GDP has remained at the previous level, showing the decline of 0.2%.
Today, German consumer confidence index for July will become known (9:00 GMT+3). The rise in the index will trigger the rise in Euro. Special attention shall be paid to the data on the initial applications for unemployment benefits in the USA. According to preliminary estimation, this index will amount 272 thousand. If the index exceeds the forecast, it will show the weakness of the labor market, which will have a negative impact on the American currency.
Support and resistance
On the four-hour chart the lines EMA(20) and EMA(50) are above the current price and directed downwards which indicates negative trend for the pair. Support and resistance levels are the local extremums of 1.1134 and 1.1215.
It is recommended to open short positions with the entry point at 1.1190-1.1180, the target of 1.1134 and stop-loss at 1215. An alternative scenario can be possible if the price consolidates above the level of 1.1215 with take profit at 1.1281 and stop-loss at 1.1200.