Technical Analysis EUR/USD for 7/29/15

As investors moved back into riskier asset on Tuesday, U.S. yields moved higher helping the dollar recover some of its losses over the past few trading sessions.  The Federal Reserve began its 2-day monetary policy meeting on Tuesday, and they are unlikely to give traders any new informatin as to when they will begin their rate liftoff. Later in the week traders will focus on German HICP reading which is scheduled for Thursday, and is expected to come out at 0.2% year over year, up from 0.1% year over year in June.

The EUR/USD tested the lower end of its broken trend line resistance, but remained above the 1.1030 level.  Additional support on the currency pair is seen near the 10-day moving average at 1.0942.  A break below that level would lead to a test of the 1.08 support level.  Resistance is seen near the July highs at 1.12.  momentum remains positive as the MACD recently generated a buy signal and the index is printing in positive territory with an upward sloping trajectory.