EUR/USD Rebound – for July 10, 2012 (Daily Strategy)
The euro is consolidating because the markets are waiting for the European decision after the meeting this week. It’s a bit farfetched to consider that something constructive will happen and even if it happens, there is a strong possibility that the market will simply fade away anyway. Unfortunately the markets are not as patient. If this situation had occurred 3 years ago, the euro and would have been quoting at 1.15
After we have broken below 1.2415 level, we gained much support. What once was support becomes resistance and this could be what we are expecting. However, we must take into account that the pair dropped almost 400 pips last week and that a rebound is not necessarily excluded.
A rebound towards 1.24 will serve as an opportunity to sell this pair from higher levels. Our medium term objective is 1.2150.
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