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Eurodollar: Ambiguous Situation

Hourly

On Wednesday the euro/dollar closed with a pinbar (daily candle with a long upper shade). After a break in the minimum of 1.1259 it will start to come off. Today I’ve not bothered to do a forecast of different scenarios since the picture across all pairs is contradictory. The AUD/USD has grown on the back of strong Australian labor market data. The rate of the NZD/USD has crashed by 2 figures after the RBNZ dropped its base rate by 0.25% to 3.25%. The euro is ready for a fall, whereas the pound is expected to jump up. That’s how it is, friends. In this situation, it’s better to be a spectator.

The euro will manage to stay in the positive zone thanks to the yield on those 10-year German bonds. Today the prime minister of Greece, Tsirapas, is due to meet with German chancellor Merkel and French president Hollande to discuss the creditors’ propositions. There’s information knocking around that Germany might just meet Greece half way.

Throughout the day there’s no important data to come out. In the evening market participants’ attention will be focused on American labor market data and the US retail sales index. Let’s have a look at the Daily tab.

GBP/USD Hourly Graph

Daily

On Wednesday the euro/dollar closed with a pinbar. It didn’t manage to break the trend. I’m sure that under 1.1259, many players have put order limits for euro sales. After a break in the minimum of 1.1259 the euro will head for 1.1130/50. Something else: the pinbars with maximums of 1.1379 and 1.1385 have formed a double top. Let’s have a look at the Weekly tab.

GBP/USD Daily Graph

Weekly

On Wednesday the euro/dollar closed with a small positive, so on the weekly there’s no change.

GBP/USD Weekly Graph

11 June, 08:00 (GMT+3)
Pound Slows Around 1.5550

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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