Today is PMI Day. Speculator and hedge-fund net short positioning on the USD have risen to the highest number of contracts since 2013. The big event for markets this week is Wednesday’s Federal Reserve decision, with a Bloomberg survey showing that no change in policy is expected.
In a broader perspective EURUSD broke the 1.16 level range. More rallies hit a 2 year high at 1.1714 MACD signals extension of bullish trend while RSI signals that the pair is losing strength. Contemplating technical reasoning, the sentiment views long position, so BUY. Keep Stop Loss at 1.15 levels Profit may go as high as 1.1875.
Potential Catalysts for Wall Street Session: 1. Markit PMI (July) (9:45 AM ET) 2. Existing Home Sales (10:00 AM ET)