EURUSD Analysis 27th June Forecast & News
- Spanish debt auction dominates sentiment
- Risk appetite in the currency markets improved somewhat today with the AUD and JPY seeing gains v the US dollar but the European single currency was the weakest major today with a drop of 0.36% - a two-week low – against the dollar
- Market participants were firmly focused on yields and an under par Spanish debt auction had the EURUSD under pressure during the European session.
- The EURUSD has subsequently moved back to the 1.2500 level which has been acting like a magnet this week. A daily close above 1.2500 could see a doji candle form on the ear/dollar daily chart.
- Daily resistance is noted around the January lows at 1.2620 and the recent highs around 1.2750.
- Positioning data is still indicative of a market extremely long the greenback and while this is the case any positive data has potential to see major short covering. However, market participants look to be lowering expectations of a favourable outcome from the EU summit this week.