EUR/USD: the Euro is under pressure on 07.07.2015

July 7, 2015

Current trend

The pair EUR/USD remains under the pressure as worries regarding Greek exit from the Eurozone grow. Today, an emergency EU leaders’ summit is held, where Greece is going to put ahead their proposals to get the financial aid. Country’s default possibility becomes stronger.

Additional pressure on the pair comes from ECB Quantitative Easing program and the Fed’s tightening policy. Dollar index WSJ grew by 0.15% to 87.44. However, Swiss NB market interventions with Frank selloffs may give unexpected support to the Euro.

According to today’s releases, trade deficit in France for May grew by 4 billion euro, while industrial production growth in Germany was 0% (forecasted 0.1%).

Important news from the US for today include Trade Balance for June, due at 3:30 pm (GMT+3) (forecasted trade deficit increase, from $40.88 billion to $42.60 billion), Redbook index for previous week at 3:55 pm (GMT+3), and JOLTS Job Openings for May at 5 pm (GMT+3).

Thus, in the short and medium-run, the Euro is likely to continue declining.

Support and resistance

The pair is moving towards 2015 low at 1.0480.

At present, the price remains near the lower border of the upward channel (1.1000), the breakdown of which would allow the pair to fall towards 1.0860.

On the daily chart, the pair growth is restricted by strong resistance levels at 1.1290 (23.6% Fibonacci), 1.1380 (EMA144), 1.1600 (EMA200).

OsMA and Stochastic remain in the sell zone on all price charts.

Support levels: 1.1000, 1.0860, 1.0720.

Resistance levels: 1.1180, 1.1235, 1.1290, 1.1380.

Trading tips

Open short positions from 1.1050, 1.1100, 1.1180, 1.1230 with targets at 1.0860, 1.0720 and stop-loss at 1.1250.

Long positons can be opened after the breakout of the level of 1.1290 with targets at 1.1380, 1.1600, 1.1785.

Publication source
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