EUR/USD buy signal
The pair has been trading sideways since the Brexit decline. The lower level is at 1.0980 and the top at 1.11. The ECB will cut rates by the end of 2016 and it could also taper its QE program. Earlier this week, German ZEW Economic Sentiment, shocked the markets by posting a sharp decline in July, the first since October 2014. The reading of -6.8 points was nowhere near the forecast of +8.2 points, and recorded a sharp downturn after a gain of 19.2 points in June.
Today after a knee-jerk bullish reaction to 1.1060 on Draghi’s initial comment, EUR/USD pair is seen fading its spike and dipped into negative territory. Currently, the euro is trading slightly below the 1.10 line. I believe that for now the bears dowsn’t have the power to drive the pair lower. We suggest a long position at 1.0990 with stop loss at 1.0971 and take profit at 1.1036.