Back to Blog

EUR/USD: Downside prevails as we approach June’s consolidation area

EUR/USD continues to grind lower this morning and it is currently hovering around the bottom of significant support from June’s consolidation area at 1.27. With the fiscal cliff pushing the US Dollar higher and the Greek issue still unresolved ahead of a quiet week from a data point of view, we expect the risk-off sentiment to prevail. From a technical point of view, the negative outlook is further supported by the downtrend line that is capping RSI on the 30 min chart. We are clearly in a bearish market with any upside likely to be limited to very short-term. At 1.2669 at the time of writing a break below 1.2655 would put the next support level at 1.2605 in focus. Only a move above 1.2775 could delay the downside, but this is hard to imagine without a major fundamental catalyst. On the economic data front things are a little quiet with the German ZEW survey due for release this morning.

Dafni Serdari
Disclaimer
The comment in this blog is the personal opinion of the contributors and not Intertrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. Intertrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.

Share this post

Back to Blog

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.