Important events today:

14:00 UTC – US: ISM service sector business activity index.

US: Treasury auctions.

The U.S. Treasury received the right to borrow money through the issue of Treasury bonds and today Janet Yellen’s office plans to hold two auctions for $123 billion, which will reduce free liquidity in the banking system and provide short-term support for the U.S. currency. Additional support to the dollar today will be given by the statistics on business activity in the U.S. services sector from ISM.

The similar indicator was released by S&P Global in late May, and that time there was a strong rise in business activity, which allows expecting the release of positive data today, as the indicators correlate with each other. However I don’t expect a strong downfall of the EURUSD quotes, for the ECB will hold its next session next week and may raise the interest rate by 4 % again. The market expectations will provide a short-term support for the European currency.

Recommendation: Sell 1.0735/1.0769 and TP 1.0670.