Last week’s trading session was one of the most volatile markets in trading history after China’s stocks crashed which fueled tremendous momentum in the FOREX market. The EUR/USD rose as high as 1.1712 but faced strong resistance below 1.1810 fibonacci level and reversed. The U.S dollar moved higher against the Euro after positive data generally from the U.S. added to optimism over the strength of the country’s economy, fueling more speculation over a possible September rate hike.
Initial bias is mildly on the downside this week for 1.1016 support first. Break of 1.1016 support will target 1.0807 support next. Decisive break there will confirm completion of whole rise from 1.0461 and would likely extend the larger down trend. On the upside, above 1.1363 minor resistance will turn bias neutral.
Later in the week all eyes would be upon U.S data such as ISM Manufacturing PMI, ADP Non-Farm Employment Change, Non-Farm Employment Change and Unemployment Rate. Outcome of this data would determine if the Feds are going to be hiking Interest Rate in the month of September.