EUR/USD forex technical analysis round-up: Jul. 12

ForexNewsNow | Published on July 12, 2011 at 3:55 am

The euro was declining against the greenback today, trading at 1.3878 as of around 7:45 A.M., GMT.

The single currency is down 1.041% on the day and has reached a session high of 1.4062 with a low of 1.3864 so far.

The euro fell to its lowest point against the dollar in four months Tuesday, after International Monetary Fund Managing Director Christine Lagarde reportedly said the institution and its European partners aren’t ready to discuss terms of a second bailout package for Greece.  “In my view, we’re not at the stage of discussing the conditions and terms, and length and volume, and nothing should be taken for granted,” she said.

This is what the analysts had to say about the heavily traded currency pair in the near-term:

– Michael Hewson, an analyst at CMC Markets, remarked that “the single currency took a huge slap on Monday, weighed down by the fact that EU leaders failed to halt the spiral mistrust because of their inability to find a solution to the debt crisis” in the euro zone.

– Spanish Finance Minister Elena Salgado said that “[Europe] is facing something that is more systemic that goes beyond Greece and concerns the stability of the euro area as a whole.”

– Ilya Spivak, an analyst at FXCM, noted that investor confidence “already undermined by bad U.S. employment figures for June released Friday, was heckled by a jump in inflation in China, fueling fears that Beijing is trying to cool growth at the edge of overheating, and aggravate the slowdown in global economic recovery.”


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