Euro at Inversion Zone


The euro rate closed down against the USD. The crash of the GBP to a 31-year minimum raised demand for safe assets: JPY, gold and US state bonds. By the close of the day, the euro was at 1.1062 dollars and the pound was down against the dollar to levels unseen since 1985.

Market Expectations:

In Asia the pound/dollar fell to 1.2791. After a 4% fall it tried to muster a fight back to 1.28. At 7:35 EET, the GBP was at 1.2882 dollars. Today is Wednesday. Trader attention will be on the US Fed minutes which are out at 21:00 EET. Then the attention will switch to the June US labour market report which is out at 15:30 EET on Friday.

On Wednesday the euro/dollar is expected to come out with a V formation with a minimum at 1.1028. It could be lower. Here we need to keep an eye on the euro/pound cross. If it starts correcting, the pound will be in a winning situation and it will start a correctional movement after yesterday”s crash. The resistance level is at 1.1088.

Day”s News (EET):

  • 11:10, business activity index in the retail sector for June.
  • 13:30, ECB”s Peter Pratt to speak;
  • 15:30, US and Canadian May external trend. ECB vice president Constancio to speak;
  • 16:45, US definitive service sector business activity index for June;
  • 17:00, US business activity throughout June in the non-manufacturing sector from ISM;
  • 18:00, ECB”s Mersch to speak;
  • 21:00, US Fed minutes.

Technical Analysis:

Intraday forecast: minimum: 1.1028, maximum: 1.1065, close: 1.1052.

Euro/dollar rate on the hourly. Source: TradingView

The LB couldn”t hold back the euro from falling. Due to a general strengthening of the USD, the euro fell to 1.1035, including today.

The price is in the zone between the 112th and 135th degrees. This is an inversion zone, so I expect a price rebound from the 135th degree. We could”ve said that a fall to 1.1027 is not going to take place, but the euro/pound is going to correct. If my conclusions turn out to be correct, it will pile pressure on the euro/dollar. In this case, the buyers will need to retreat. From here we could risk buying euro before Friday”s NFP. Moreover since it is being supported via the minimum from 30th June.

Earn from currency market fluctuations by investing in a Forex Investment Portfolio

Source:: Euro at Inversion Zone

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply