2012-07-11 15:02:00
1. Current trend of EUR/USD
The Unified European currency continues to fall rapidly against the USD. On Tuesday, the pair EUR/USD reached the new local lows of 1.2235.
2. Fundamental data
Sales in the Euro were triggered by the news about decline in the industrial production index in Italy, which fell by 7% in May. Many experts believe that optimistic plan of the Italian prime-Minister to reduce budget deficit by 4.5 billion euro will not be implemented, amid high unemployment rate and decrease in the business activity in the country. It is obvious, that decline in the industrial production will negatively affect taxes and budget. So, great hopes differ from tough reality.
Leaders of the European Union made another attempt to reassure the debt market and support economy. It became known politicians approved the rescue plan of Spain. Anti-crisis Fund EFSF-ESM is ready to allocate 30 billion euro; part of this fund will be used to support banking sector after stress-test of the troubled banks. As soon as this decision became known, yield of Spanish bonds had dropped below 7%; however the pair EUR/USD continued to decline.
The Unified European currency also suffers from pressure provided from preliminary hearing in the Constitutional Court of Germany on the ratification of the current anti-crisis fund ESM and fiscal pact of the European Union. No doubt, that this case precludes from making up common plans to combat European crisis.
3. Important levels (Support and Resistance)
The most significant resistance levels are: 1.2293, 1.2323 and 1.2354.
The most significant support levels are: 1.2193, 1.2162 and 1.2132.
4. Best entry/exit points
Currently, the best target for sale is the level of 1.2193, with protective order around 1.2234.
Recommended buying level is above 1.2293, with protective order at 1.2266.
The Unified European currency continues to fall rapidly against the USD. On Tuesday, the pair EUR/USD reached the new local lows of 1.2235.
2. Fundamental data
Sales in the Euro were triggered by the news about decline in the industrial production index in Italy, which fell by 7% in May. Many experts believe that optimistic plan of the Italian prime-Minister to reduce budget deficit by 4.5 billion euro will not be implemented, amid high unemployment rate and decrease in the business activity in the country. It is obvious, that decline in the industrial production will negatively affect taxes and budget. So, great hopes differ from tough reality.
Leaders of the European Union made another attempt to reassure the debt market and support economy. It became known politicians approved the rescue plan of Spain. Anti-crisis Fund EFSF-ESM is ready to allocate 30 billion euro; part of this fund will be used to support banking sector after stress-test of the troubled banks. As soon as this decision became known, yield of Spanish bonds had dropped below 7%; however the pair EUR/USD continued to decline.
The Unified European currency also suffers from pressure provided from preliminary hearing in the Constitutional Court of Germany on the ratification of the current anti-crisis fund ESM and fiscal pact of the European Union. No doubt, that this case precludes from making up common plans to combat European crisis.
3. Important levels (Support and Resistance)
The most significant resistance levels are: 1.2293, 1.2323 and 1.2354.
The most significant support levels are: 1.2193, 1.2162 and 1.2132.
4. Best entry/exit points
Currently, the best target for sale is the level of 1.2193, with protective order around 1.2234.
Recommended buying level is above 1.2293, with protective order at 1.2266.
