Tuesday, June 10, 2014
The absence of significant economic releases in the Eurozone, and scarce volatility in global markets combined to leave the EUR/USD pair vulnerable for another trading session. We continued to see another bout of pressure applied on EUR/USD as investors sought for higher yield in dollar-denominated assets. The yield spread widened between US treasuries and Eurozone peripheral debt, making the greenback more attractive. With Spanish yields declining below those of US 10yr rates, the Eurozone debt market offered little value to investors, creating outflows that put pressure on the euro currency. There was also simultaneous improvement in the US benchmark 10yr rates that settled above 2.60%, which kept the buck well bid.
In today's trading session, we saw the common currency fall 68 pips in comparison to the US dollar from the session high of 1.3602 to the session low of 1.3534. The pair is currently in consolidation above today's session low.
Monday, June 9, 2014
We saw another round of Euro selling post the ECB announcement from last week. Some of this pressure on EUR/USD could be a combination of lingering reactions to the dovish position of the ECB to provide stimulus, as well as the overall thin liquidity due to Whit Monday. During today's trading session, the EUR/USD fell 87 pips from the session high at 1.3669 to the session low at 1.3582. In today’s technical analysis video, we will describe price action in EUR/USD and identify common areas of support & resistance for trade entry.