EUR/USD: European open analysis
Courtesy of Chifbaw.com
- No trade recommendations.
- The EURUSD will not make new highs (higher than 1.317) until Spain requests a bailout and the OMT is activated.
- The market will have a moderately bearish bias until further clarity emerges on the US Fiscal Cliff issue.
The EURUSD seems to be a secondary currency today despite the heavy economic calendar, and most of the action is in the Asian currencies (JPY, AUD). Yesterday we touched the middle of the down trending channel at 1.2770, but we were not able to stabilize there, despite FOMC minutes rather bearish for USD. We expect to revisit the area 1.2770-1.2830 in the coming days, but the timing of it is difficult. Today, we expect the EURUSD to remain stuck in between 1.270 and 1.28. Moves towards 1.28 during the first two hours of the European session will be met with stark resistance and present a possible scalping opportunity for a small 10-20 pip profit but it is risky.