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10 Jul 2013
EUR/USD, look for sell signals towards 1.2845 - 2ndSkies
FXstreet.com (Barcelona) - The EUR/USD exchanges rate is at a stone's throw from making fresh year lows, currently at 1.2778 after shedding 91 pips or 0.70 of its value during an agitated US session on Tuesday.
Carousel of negative news hit the Euro
The Euro failed to weather the bearish storm following a sequence of headlines, eventually creating a snow ball effect in the EUR/USD exchance rate, as stop loss orders below 1.28 May lows to quotes as cheap as 1.2752. The headlines included ECB’s Asmussen saying Forward guidance goes beyond 12 months, also the ECB member did not rule out a new LTRO. On the global backdrop, IMF downgraded growth expectations, while S&P cut Italy’s sovereign credit rating to BBB from BBB+.
EUR/USD text-book bear trend since June 20
According to Chris Capre, Founder at 2ndSkies, "The bear trend is still in play, so look for sell signals towards 1.2845 (4hr 20ema). Once 1.2750 is cleared, 1.2650 and 1.2600 will be on deck." In the next Asian session, recoveries in the EUR/USD, until/if reaching Capre's recommended 1.2845 should face early sell pressure at 1.2805/10 - swing low - too.
Carousel of negative news hit the Euro
The Euro failed to weather the bearish storm following a sequence of headlines, eventually creating a snow ball effect in the EUR/USD exchance rate, as stop loss orders below 1.28 May lows to quotes as cheap as 1.2752. The headlines included ECB’s Asmussen saying Forward guidance goes beyond 12 months, also the ECB member did not rule out a new LTRO. On the global backdrop, IMF downgraded growth expectations, while S&P cut Italy’s sovereign credit rating to BBB from BBB+.
EUR/USD text-book bear trend since June 20
According to Chris Capre, Founder at 2ndSkies, "The bear trend is still in play, so look for sell signals towards 1.2845 (4hr 20ema). Once 1.2750 is cleared, 1.2650 and 1.2600 will be on deck." In the next Asian session, recoveries in the EUR/USD, until/if reaching Capre's recommended 1.2845 should face early sell pressure at 1.2805/10 - swing low - too.