With a sharp rebound in EURUSD from 1.1807, traders will begin to work out the “double bottom”


On Tuesday, July 6, trading in the euro ended in decline. The euro / dollar fell 0.30% to 1.1823. The daily low was fixed at 1.1807. The collapse of the euro began with the opening of the European session. First, the downward impulse was triggered by the Vice-President of the European Commission for Interdepartmental Relations and Forecasting, Maros Sefcovic. After the release of the disappointing results of a survey by the economic research institute ZEW for Germany and the eurozone, an escape from risky assets began. Economic sentiment indices for July fell in both Germany and the Eurozone. They caused the euro to fall and European equities to sell off. Traders began to sell futures for oil, gold, risky assets in the dollar, yen and US bonds.

ISM and PMI for business activity in the services sector were worse than expected. Markets ignored them due to the forthcoming publication of the FOMC minutes.

Scheduled statistics (GMT + 3)

  • At 5:00 pm, Canada is to release the Ivey Executive PMI for June. The United States will announce a change in the level of vacancies and turnover in May.
  • At 21:00 the US will publish the minutes of the Fed meeting.

Current situation

At the time of this writing, the euro is worth 1.1815. The fall in price stopped at the low of July 2. “Australian” and “New Zealander”, as well as yesterday, hold the first lines in terms of profitability. Today they rise in price after yesterday’s fall – correction before the publication of the minutes of the June meeting of the FOMC, which will be released at the American session. The hawkish tone of the protocol will provide additional support to the US dollar. He should clarify the situation on the further steps of the US FRS.

European indices and futures on US indices are trading in the red. Market participants do not want to buy shares now. In addition, the second quarter reporting season has begun, which will add uncertainty.

The dollar index futures are trading at 92.52. Support is at 92.40. Buyers retain control of the market. The situation is unlikely to change before the release of the FOMC protocol.

The euro slipped well yesterday against the “Briton”, but quickly won back the losses. At the American session, investors no longer understood what was happening in the market. Today the euro / pound cross is stable at 0.8565. If the cross consolidates above 0.8580, then the EUR / USD pair will keep moving above 1.1807. If the euro bounces sharply from 1.1807, TA traders will start working out the “double bottom” pattern. Resistance is 1.1850. It remains to wait for the FOMC protocol to find out which level will be at risk: 1.1800 or 1.1850.

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