Forex Technical Update
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
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.
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.
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