The Euro extended its recovery from 1.4012 in the last hours ahead of Wall Street opening and reached above 1.4090 the highest price since the Asian session. EUR/USD rose so far 75 pips from the lows but remains trading below Friday’s closing price by almost 80 pips.
The European currency remains weak amid worries about the debt crisis. Greece, Portugal, Italy and Ireland government bonds are falling in the market showing signs of concerns from investors. Credit Default Swaps across European counties are also rising.
From a technical perspective, the outlook for EUR/USD has turned lower following a price failure at the 1.4282 level and its subsequent declines to close lower last week according to Mohammed Isah from FXTechstrategy. “With bear pressure remaining intact and a follow through on the back of its past week losses underway, risk is building up for a return to the 1.3837 level, its July 12’2011 low.”
Mr. Isah warns that the pair will have to raise above 1.4282 to reverse “its present downside threats and target further corrective recovery towards the 1.4578 level, July 03’2011 high.”
The European currency remains weak amid worries about the debt crisis. Greece, Portugal, Italy and Ireland government bonds are falling in the market showing signs of concerns from investors. Credit Default Swaps across European counties are also rising.
From a technical perspective, the outlook for EUR/USD has turned lower following a price failure at the 1.4282 level and its subsequent declines to close lower last week according to Mohammed Isah from FXTechstrategy. “With bear pressure remaining intact and a follow through on the back of its past week losses underway, risk is building up for a return to the 1.3837 level, its July 12’2011 low.”
Mr. Isah warns that the pair will have to raise above 1.4282 to reverse “its present downside threats and target further corrective recovery towards the 1.4578 level, July 03’2011 high.”
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