The EUR / USD pair maintains a horizontal vector of movement over the medium term, and has reacted poorly to the publication of FOMC protocols, which have somewhat reduced investors' expectations regarding a further reduction in interest rates in the USA.
The European currency continues to be pressured by the tense political situation in Italy and the continuing risks associated with Brexit. EU leaders rejected London's proposal to exclude clause on regulation of the Irish border from the Brexit agreement. The probability of Britain leaving the EU without an agreement is growing.
Today, market focus will be on preliminary PMI data on the manufacturing and services sectors in the EU and the USA. Most likely, these are the indicators that will set the main tone for the EUR / USD pair.
PMI data in France and Germany came out better than market expectations, to which the pair EUR / USD reacted with restrained growth. We look forward to the publication of ECB protocols and PMI data for the US manufacturing and services sectors.
On the chart, consolidation continues in the range of 1.1070-1.1110. In case of breakdown of support at 1.1070, the targets for bears will be levels 1.1035 and 1.1000. It is possible to count on the formation of recoil movement in the direction of the level of 1.1175 only after the breakdown of resistance at 1.1110.
Resistance levels: 1.1110, 1.1175, 1.1240.
· Support levels: 1.1070, 1.1035, 1.1000.
The main scenario is a breakdown of support at 1.1070 and a decline to 1.1000.
An alternative scenario is consolidation in the range of 1.1070-1.1110.
On the chart, there is a sidewall, within which you can consider both buying and selling from the borders of the price channel.