EURUSD Analysis News & 10th July Forecast
- Euro/dollar found a bid on the 9th July, after hitting a two-year low on Friday, following the terrible NFP employment figure.
- Comments from Mario Draghi, the ECB (European Central Bank) president helped stem the EURUSD downside pressure on Monday. Draghi advised that that euro-zone policy makers had made progress on reforms. An important focus this week is whether the details around European banking supervision can be progressed, this is viewed as a prerequisite for the use of the ESM to recapitalize banks.
- The market has a clear focus on an important figure during recent trading and that is the Spanish 10-year bond yield; this has crossed over the crucial 7% level on Monday – Spain can’t sustain borrowing at the 7% level.
- US data of note this week brings Unemployment Claims, Trade balance, PPI and Consumer Sentiment.
- From a price action perspective the EURUSD is well below the 20 day SMA. This is currently located just above the 1.2500 level. The 28/6/2012 1.2406 daily low comes before this and is a prominent level that could potentially see resistance if hit. A short squeeze could possibly see a test of the above levels. Any further negative eur onews wou conversely bring the two year lows back into focus.
EURUSD Daily Timeframe Chart