EUR/USD WEEKLY TECHNICAL REVIEW 06.12
In the previous EUR/USD Weekly Review, we noted that the US NFP was worse than expected and that the American economy is really not out of the danger zone yet. Mounting debts are a threat and the low interest rate threatens to erode the value of the US Dollar. On the other hand, while the Euro Zone’s diversity complicates efforts to cooperate, it also shields the entire Euro Zone from an immediate complete melt down when financial crisis strikes. Looking at the EUR/USD chart above, the currency pair is currently in a steep drop. Slicing through the 1.44 line like butter, if the bearish pressure persists, we may be looking at 1.42 next. It seems that the market is not ready for a higher Euro currency for now as the EUR/USD tried unsuccessfully to break beyond 1.46+. From a technical point of view, the currency pair will be bearish unless it consolidates and holds above 1.44. The main highlight of the week was probably the Euro Zone minimum bid rate which remained unchanged at 1.25%. While a number of investors hoped that an interest rate hike was done, the market was relatively unsurprised with the move. Having said so, comments from the European Central Bank ECB indicated that there might be differences regarding the solution to the Greek deficit crisis and the market took that badly. Despite previous developments regarding the continuum of a Greek solution, possibly involving a further bailout and even private involvement, individual ECB officials deferred in their take on the situation. It may be possible that Greek developments may continue to steer the Euro currency next week.
In the previous EUR/USD Weekly Review, we noted that the US NFP was worse than expected and that the American economy is really not out of the danger zone yet. Mounting debts are a threat and the low interest rate threatens to erode the value of the US Dollar. On the other hand, while the Euro Zone’s diversity complicates efforts to cooperate, it also shields the entire Euro Zone from an immediate complete melt down when financial crisis strikes. Looking at the EUR/USD chart above, the currency pair is currently in a steep drop. Slicing through the 1.44 line like butter, if the bearish pressure persists, we may be looking at 1.42 next. It seems that the market is not ready for a higher Euro currency for now as the EUR/USD tried unsuccessfully to break beyond 1.46+. From a technical point of view, the currency pair will be bearish unless it consolidates and holds above 1.44. The main highlight of the week was probably the Euro Zone minimum bid rate which remained unchanged at 1.25%. While a number of investors hoped that an interest rate hike was done, the market was relatively unsurprised with the move. Having said so, comments from the European Central Bank ECB indicated that there might be differences regarding the solution to the Greek deficit crisis and the market took that badly. Despite previous developments regarding the continuum of a Greek solution, possibly involving a further bailout and even private involvement, individual ECB officials deferred in their take on the situation. It may be possible that Greek developments may continue to steer the Euro currency next week.
