Forex Technical Update

Previous: EUR/USD Breaks Below Intra-Day Range Support but Risk is On (6/27)

The EU summit has so far been a dud. Merkel remains adamant about not using eurobonds or eurobills. The meeting is unlikely to produce any specific details on plans in dealing with troubled banks. This impasse pushed Spanish 10-yr bond yields above 7.0%, while Italy's 10-yr bond auction sold at a 6-month high of 6.19%. Equities were down and the EUR/USD slid to 1.24 from 6/28 European session high of 1.2520.

EUR/USD 4H Chart 7:33AM EDT 6/28/2012

EUR/USD

So far this week, the EUR/USD has been in a sideways market, with a little bit of bearish bias. During the 6/28 Asian session, the pair reached above 1.25, but stalled as the EU summit failed to provide any credible solutions yet.

As we gear up for the 6/28 US session, EUR/USD found support at 1.24, trading around 1.2450 at 7:40AM EDT. Under 1.25, the EUR/USD is still bearish.

Looking at the 4H chart, we an see that a push below 1.24 during the 6/28 US session can open up the June lows in the 1.2285-1.23 area.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of x News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.