The European currency keeps strengthening slightly against the American Dollar. Yesterday, the pair reached the level of 1.1213.
According to economists, the Euro was supported by the news that Greece and its international creditors reached an agreement on the third financial aid package. Despite that the Greek economy is expected to shrink by 2.3% and only in 2017 it may return to growth.
Moreover, the Euro strengthened as the Central Bank of China devalued its national currency in order to boost exports. Experts believe that due to these events, Fed may postpone its interest rate hike. Thus, on Monday, Fed Vice Chair Stanley Fischer said the deflationary trend bothers the regulator, but is one of many factors the US Central Bank is watching.
Support and resistance
Support level: 1.1108 (6/8 Murrey level).
The nearest resistance level is 1.1229 (8/8 Murrey level).
Open short positions when the level of 1.1108 is broken down with the target at 1.1060 and stop-loss at 1.1135.