EUR/USD: news from the battlefield
EUR/USD is recovering from the yesterday’s dip to $1.2985, strengthening to $1.3040 (61.8% Fibo from May-June rally). As expected, the psychological $1.3000 area is offering support for the euro.
Given the H4 MACD divergence and the oversold market conditions, we concede the recovery to extend to $1.3100 (50% Fibo from the May-June rally, 23.6% from the recent decline). However, the medium term picture remains bearish: break through the $1.3000 barrier would open the way to our target at $1.2850.
Euro zone will release a bunch of data today, including German unemployment change and M3 money supply. Today the EU economic summit begins.
Chart. H4 EUR/USD