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Euro Finds Balance Point at 1.1030

Hourly

Yesterday’s Trading:

On Monday the euro/dollar renewed after a fall to the balance line and closed the day at 1.1055. Traders of the euro are waiting for the ECB’s verdict on the ELA program and the results of the EU summit regarding the Greek problem.

The situation for the euro is precarious since the IMF has decided not to provide Athens with more credit. The head of the fund, Christine Lagard, explained the impossibility of offering more credit according to the organization’s rules, however she did suggest an offer of technical support. The bank holidays in Greece have been extended for another few days.

Main news of the day:

  • At 9:00 EET, Germany is publishing its data on manufacturing order purchases for May;
  • At 11:30 EET, the UK will release statistics for changes in manufacturing production and industrial production for May;
  • At 17:30 EET the US and Canada are publishing their external trade figures for May;
  • At 19:00 EET, June GDP data changes for the UK will come out from NIESR;

Market Expectations:

The euro is still under pressure whilst there’s no new commentary from the EU summit.

Technical Analysis:

  • Intraday target: maximum: Asia opening, minimum: 1.0958 (in US), close: 1.10;
  • Intraday volatility for last 10 weeks: 139.7 points.

The euro/dollar has corrected by 45 degrees from a 1.1091 maximum. The buyers couldn’t fully close the gap. I’m inclined to believe there’ll be a roll back to 1.1055. From here I’m waiting for the euro to fall to the 112th degree – 1.0958.

 
 

GBP/USD Hourly Graph

Daily

The euro/dollar jumped from the trend line, but the tendency for a fall is still there. Now to the Weekly tab.

 
 

GBP/USD Daily Graph

Weekly

After the referendum, the market situation is unchanged. The euro/dollar is trading at 1.1029. The weekly indicators are showing a break in the trend line. Due to this, I’m sitting in the bear camp.

 
 

GBP/USD Weekly Graph


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