On July 2nd, after the end of the European trading session the common currency declined by 0,17% against the US Dollar. On July 3rd, market participant are waiting for a busy day full of central bankers speaking and economic releases. By the way this is the last trading day of the shortened trading week since on July 4th the USA is celebrating the Independence Day.
The trading day will start from the speech that will be made by Glenn Stevens, Governor of the Reserve Bank of Australia. During the European trading session, several eurozone economies are set to release their Service PMIs. Later on, the ECB's monetary committee is going to announce its monetary policy decisions for the near future. The release will be followed by Mario Draghi's press conference, where the President of the ECB will comment on the announced decisions.
Finally, during the American trading session, we are going to see non-farm payrolls, which are usually released on Friday but this time they will be released prematurely due to the day-off in th USA.
Apparently, the ECB's monetary policy decisions will be one of the key events of the day along with non-farm payrolls. As for the ECB's decision, traders, investors and analysts do not expect major changes since the economic slowdown is not as big as to start major changes to the monetary policy. The ECB is probably going to watch the effect of the recent changes over the next couple of meetings.
At the same time, taking into account a strong preliminary employment report, the forthcoming non-farm payrolls report is probably going to be stronger than expected as well.
EURUSD: Near-Term Prospects
According to the comprehensive analysis conducted by Masterforex-V Academy, the mid-term H4 timeframe of EURUSD is currently showing us the following state of affairs:
The mid-term rally started from 1,3512 completed the making of another bearish reaction suspended at 1,3641, thereby leaving the price within the scope of the ascending MF sloping channel. According to the Masterforex-V trading strategy, as long as the price is above the bottom of an ascending MF sloping channel, the bias is bullish, which means a rally is more likely.
In this case, the next bullish move is probably going to reach the MF pivot close to 1,3682. A break above the pivot will give way to 1,3698 and maybe higher. If this is the case, the current mid-term rally will be resumed.
Alternatively, we may see a deeper reaction, especially if the price succeeds in breaking below 1,3682-1,3698. In this case, we are likely to see a reversal followed by a bearish momentum down to 1,3641, 1,3608 and 1,3575. If the price breaks and consolidates below the bottom of the ascending MF sloping channel, this may well be the first sign of a new mid-term bearish trend.
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