The single currency is still struggling to have footing above 1.30 versus the greenback cheered by the stress test results of 91 European Banks which told the market that only 7 of them failed in these test. The EUR could touch 1.3045 but it could not keep its progress falling to 1.296 again. 1.30 is expected to keep forming an obstacle in the EURUSD ascending way and crossing this level should lead to a harder test of this pair to cross the area between 1.3096 whereas the pair has fallen making another lower high on 10th of last may after breaking it as a support and tested it back as a resistance and 1.3114 which is the 38.2% Fibonacci retracement level of the falling from 1.5142 to 1.1874 while the next major support is at 1.2735, 1.255, 1.2452, 1.2165, 1.2044 and 1.1954 and 1.1875 which has become the pair main defending line before 1.16 whereas the pair has started its rally to 1.604 before falling again to 1.233 amid the credit crisis and rising back forming a lower high at 1.515 in the beginning of last December.
The US equities market could keep these gains again yesterday and Dow could add another 12 points to close at 10537 opening its way up technically to this year high at 11258 with a great probability of having a lower high before it as the worries about the US growth slow down is still increasing and the dovish data are expected to continue. The US Stocks could get over the weaker than expected earning reports of its banking sector earning reports owes after the disappointing earning of Goldman Sacks which shrank by 82% in the second quarter because of the fraud settlements after accusing it of hiding the real financial position of some sub-prime mortgage securities from the investors who have been exposed to defaulting later because of this misleading position of it subtracting 550$m from its earning beside 600$m from Britain new imposed taxes on its bounces getting just 78 cents a share from $4.93 a share a year earlier earning of Goldman Sacks in the last quarter could not help the market to forget the weak earning of Bank of America and Citigroup but joined them to add more doubts about the credit market earning ability.
Walid Salah El Din