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EURUSD: drop from the 67th degree likely


On Wednesday the 26th of June, trading on the euro closed slightly up. The pair spent the day trading flat with an average rate of 1.1365. On the one hand, the dollar was doing well on account of decreased risks of a rate slash by the Fed in July. On the other hand, there was pressure on the dollar from a weak durable goods orders report for May. The euro hit a new session low before recovering to 1.1391. In the Asian session, the bears recovered their losses, and the pair is now ready for fresh lows.

Day’s news (GMT 3):

  • 12:00 Eurozone: consumer confidence (Jun), economic sentiment indicator (Jun), business climate (Jun), industrial confidence (Jun).
  • 15:00 Germany: harmonised index of consumer prices (Jun).
  • 15:30 US: GDP (Q1), GDP price index (Q1), initial jobless claims (21 Jun).
  • 17:00 US: pending home sales (May).

Current situation:

Yesterday’s expectations were fully met. The pair returned to the 1.1346 support. I’m expecting the pair to break through this and drop to the 67th degree. Since the pair rose to 1.1391, I can’t see it dropping any further than 1.1331 today. If we set our target according to the downwards channel, we’re looking at 1.1311.

All eyes are turning towards Saturday’s meeting between the presidents of China and the USA. Any developments here could be very significant for currency markets.

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