The EUR / USD pair continues to decline and, during today's trading, tested the 2-month low, around the 1.1140 mark. The US dollar continues to put pressure on the price, which is being strengthened by the news of the resumption of the US-China trade negotiations and reaching an agreement on a two-year budget between Democrats and Donald Trump.
Additional pressure on the European currency has a meeting of the ECB, the results of which will be announced tomorrow. Most investors expect the regulator to signal easing of monetary policy and the resumption of the QE program, which in the medium term is a strong negative factor for the European currency.
Today, the market will focus on preliminary PMI data for the services and manufacturing sectors in the US and Europe. In the morning, PMI data were published in France. Both indicators turned out to be lower than expected values, increasing the pressure on the EUR / USD pair. Later similar data will be published for Germany, the EU and the USA. Also in the US today will be announced data on sales of new housing.
On the graph, the situation has not changed significantly, locally, the descending trend remains relevant. Today you should pay attention to the level of 1.1155. If buyers manage to gain a foothold above this mark, it will be possible to count on the formation of a corrective movement, in the region of 1.1200 and above. As long as the price stays below 1.1155, the variant with a decline towards 1.1120 is more likely to be refined.
· Resistance levels: 1.1155, 1.1200, 1.1240.
· Support levels: 1.1120, 1.1100, 1.1080.
The main scenario - a decline to 1.1120.
An alternative scenario - consolidation above 1.1155 and growth to 1.1200.
The market remains a negative fundamental background. The chart is dominated by bearish signals. Inside the day, we consider shorts, when the price rolls back to the area of 1.1200.