The euro stopped a 3-day fall at yesterday's session. It managed to close with marginal gains. The Greece saga was postponed again. The Ifo Business Climate Index in Germany fell to 107.4 points in June from 108.5 points last month. The indicator for the current business situation declined this month following three successive increases.

Today is a data heavy day for the US dollar and euro as well. The pair is trading below the 20Dsma and 100Dema. The pair broke the ascending trendline and closed below that.

Initially, the pair faced strong resistance at 1.1467 and the crucial line is seen at 1.1535. After the FOMC meeting, the pair made the last leg on the higher side, but it was twice rejected at that level. This week's US housing data pushed the euro down against the greenback.

Bears: the weekly support is found at 1.1120 and 1.1050 20Wsma. The litmus test is expected at 1.1050, a daily close below this is likely to lead to another test at the previous swing lows of 1.0890 and 1.0820. Resistance is seen at 1.1235, 1.1260, and 1.1290. Selling on rises favours the trend with sl 1.1290. Fresh selling advised below 1.1170. Selling pressure accelerates below 1.1130 towards 1.1070. The panic will trigger at 1.1050 towards 1.0970, 1.0860, and even 1.0800. In the four-hour chart, the pair started moving towards lower lows.

Bulls: bulls must close above 1.1290 to regain control. In this case, they will target 1.1350, 1.1380, and even 1.1440. Intraday support is found at 1.1170 and 1.1130. Resistance is seen at 1.1235, 1.1260, and 1.1290. Risky buying is available above 1.1240. In the extreme case, the pair could hit an intraday high of 1.1330. In the intraday time-frame, oscillators look oversold and a mild pullback is expected.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com