Tag: euro zoneSort
After the Sovereign Debt Crisis Comes the Deleveraging
U.S Debt Ceiling Deal Done, Focus Back on the Euro Zone
Now that the U.S Debt Ceiling deal is done, traders are shifting their focus back to the Euro Zone. There are worries of the Euro Zone debt crisis spreading to Italy and Spain, as their bonds yields 14 years high. The EUR/USD has been on the decline since reaching the 1.4534 high, this morning it has hit the 1.4150 low.
EUR/USD breaks the 1.4280 minor resistance line and reaches the 1.4436 high. The Euro rallied on a strong note yesterday as the Euro Zone agreed to a 2nd Greek bailout. Intraday bias has changed to the upside, since the currency pair was able to maintain its price action above the 1.4280 minor resistance line.
Euro Zone Leaders “Confident” of a New Greek Bailout
EUR/USD is trying to rally itself to the 1.4280 resistance, the Euro has gained some momentum as the Euro Zone summit approaches. Intraday bias remains on the downside, as long as the 1.4280 minor resistance line is not broken. On the upside, if the 1.4280 minor resistance line is broken it will reverse the bearish sentiment to bullish bias and target the 1.4576 major resistance line.
EUR/USD breaks below the 1.4305/1.4124 support lines and hits the 1.4072 low. Intraday bias has changed to the downside, as long as the 1.4495 minor resistance line is not broken. On the downside, since the 1.4305 and 1.4124 support lines have been broken, than look for the currency pair to continue the bearish momentum and target the 1.3968 major support line.
The European currency has depreciated dramatically against the US dollar in the past few months, falling from over $1.50 on December 1st to $1.35 today. The move has caused many investors to question the viability of the European Union and its currency, while also serving to reinforce the notion of the USD’s position as the world’s reserve currency.
Earnings Reports to Dictate U.S. Dollar’s Direction
Appetite for Commodities Increases as Global Manufacturing Improves
Bullish manufacturing reports from China, the Euro Zone and the U.K. helped boost appetite for more risky assets overnight, fueling greater demand for commodities. A better-than-expected U.S. manufacturing report and a report showing an improvement in construction spending is helping to support the established rally at the midsession.