EUR/USD retreats to 1.11 as Fed rate bets rise

EUR/USD ended the Monday session with a slight loss of about 35 pips, as it touched the 1.11 mark where a declined was ultimately stopped. US Dollar gained ground amid expectations the Fed is going to raise interest rates, albeit only later in 2016 and not tomorrow. Considerable downturn is not expected, given a formidable support area under 1.1045. Contrary to that, we foresee a continuation of the leg up to the five-month downtrend at 1.1350, before another selloff takes place. Within the triangle pattern, trading range is likely to gradually narrow down.

While yesterday the bearish market portion surged to 57% before the European session, over the trading day it has seen a setback down to 55%.