2012-07-23 13:04:00
1. Current trend of EUR/USD
On Friday, July 20, the euro has reduced its value against the U.S. dollar. Despite the fact that Spain will receive financial assistance from the EU in amount of 100 billion euros, the region remains to be one of the problem centre of the debt crisis on the European map. That is exactly negative news from Spain that has become the reason for the significant drop of the euro / dollar pair. Acute financial problems experiences the Spanish region of Valencia, which needs refinancing of its debt obligations. Also, the profitability on ten-year loan has reached 7%.
2. Important levels (Support and Resistance)
Important levels of resistance are 1.2160 and 1.2195. Resistance level is 1.2100, the next level on the way of bearish traders is 1.2050.
3. Best entry/exit points
Sell contracts look more promising. In this case, it's worth entering the market at 1.2090 with a set of Stop Loss at 1.2130.
4. Supporting facts
At the moment, the economic situation in Europe remains extremely unstable. Even in those countries that are considered to be leading in the EU, there is some decline. The index of business climate in business community of Germany, according to the experts, is expected to decline, as well as the composite index of Purchasing Managers.
Preliminary data on consumer trust in the euro zone will come this week. Experts expect that because of continuing unstable situation, the trust will decline in comparison with the June data.
On Friday, July 20, the euro has reduced its value against the U.S. dollar. Despite the fact that Spain will receive financial assistance from the EU in amount of 100 billion euros, the region remains to be one of the problem centre of the debt crisis on the European map. That is exactly negative news from Spain that has become the reason for the significant drop of the euro / dollar pair. Acute financial problems experiences the Spanish region of Valencia, which needs refinancing of its debt obligations. Also, the profitability on ten-year loan has reached 7%.
2. Important levels (Support and Resistance)
Important levels of resistance are 1.2160 and 1.2195. Resistance level is 1.2100, the next level on the way of bearish traders is 1.2050.
3. Best entry/exit points
Sell contracts look more promising. In this case, it's worth entering the market at 1.2090 with a set of Stop Loss at 1.2130.
4. Supporting facts
At the moment, the economic situation in Europe remains extremely unstable. Even in those countries that are considered to be leading in the EU, there is some decline. The index of business climate in business community of Germany, according to the experts, is expected to decline, as well as the composite index of Purchasing Managers.
Preliminary data on consumer trust in the euro zone will come this week. Experts expect that because of continuing unstable situation, the trust will decline in comparison with the June data.
