EUR/USD: news from the battlefield
Yesterday’s euro’s rebound was capped at $1.3150 following the Draghi’s speech and the release of upbeat US statistics. On Wednesday EUR/USD is under bearish pressure, but holds above the $1.3050 support (fresh 3-week low). Today’s data showed German GfK consumer climate improved to 6.8 in June from previous 6.5.
Our general view on the pair remains bearish with the medium-term target at $1.2850. Bullish correction would extend in case of a break above $1.3150, but the upside seems to be capped by the $1.3180/3200 (38.2% Fibo from the May-June rally, 38.2% Fibo from the June 19-24 decline) or $1.3220/45 (50% Fibo from the May-June rally) resistance areas. Only a break above $1.3250 would mean that the June decline has come to an end.
Drop below $1.3050 would open the way to $1.3000. Pay attention that this psychological support may cause another wave of correction.
Chart. H4 EUR/USD