Yesterday, the US dollar traded lower against other major currencies, such movement is caused by the publication of economic data for the US, which were lower than expected, which reduced investor confidence in the fact that the economy will begin to recover in the 2nd quarter. Sales of existing homes fell to a level of 5.04 million homes per year with expected to grow to 5.24 million homes a year, and the index of business activity in the manufacturing sector from the Philly Fed fell to 6.7 in May, remember, that the April figure was 7.5.
Today, it's going to be a press conference of the Bank of Japan, which will illuminate the further course of monetary policy, most likely the Bank of Japan will leave the current policy of increasing the money supply by 80 billion yen per year. Later is expected to publish the base Consumer Price Index for the United States, if the data is worse than expected, there is no doubt that the pair will continue to decline.
I am considering to sell the currency pair from the resistance level of 121.10, with the objectives of profit 120.90; 120.65; 120.40.
If the pair breaks and consolidate above 121.10 resistance level, then it is paving the way for the following levels of 121.50; 122,00.
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