As I mentioned last week, the euro would inevitably face the super strength of 1.6000 ... as a result of this confrontation there was a strong rebound that led to the low price of 1.5800, before recovering rising to close at 1.5855.
The economic situation in the United States remains fragile, however you can see an improvement. It is the first time in a long time that the credit sector delivers positive news as large financial institutions like Citigroup, JP Morgan Chase & Co. and Wells Fargo & Co would be reporting better results for the second quarter. Within this plan, the biggest news remarkable is the willingness of the Fed to support the company's losses Fannie Mae and Freddie Mac credit attacking the problem at its root.
Fundamental Analysis
forces pushing for a lower dollar has lost ground, we see a sharp drop in oil prices, over 10%, breaking the uptrend line. This dramatic fall can be a crude indication that the famous "bubble of the products being deflating ... On the other hand, European, and especially of Germany delivered very encouraging values \u200b\u200bsuch as confidence level investors has fallen to levels records. Another example is the result measured in Scotland where you could see a sharp contraction in manufacturing. All this gives us clear signs of weakness in the euro area.
And finally we have a situation optimistic the U.S. economy, on one hand the financial sector to deliver better results than expected and the other a government attitude of attacking the root problem.
For Fundamental analysis can not appreciate a better situation for the dollar recovery.
However, our attention EXTREME that the Euro has closed higher, with a collapse of oil, the odds for a dollar more strong and a weaker Euro. All this leads us to be very cautious.
think the market is still in doubt, the Euro price is stable, and certainly the direction it takes this week could mark the medium-term trend. News
advertised are interesting indicators of the housing market to be delivered on Thursday related to mortgages and stocks Friday as expected level of new mortgage sales in the United States
Technical Analysis
Price Euro hit a record high of over 1.6000 (reaching up to 1.6040) but there was strong rebound sending the price up to 1.5900 Euro. And then continue down to the 1.5800 area bouncing back to close at 1.5855 rising. Our technical indicators give mixed signals, first the stochastic indicates further decline, the RSI indicates neutrality, the momentum indicates that the price of the Euro should rise.
What I can say is that is being compared with 2 resistors, one higher in the 1.6000 and another at 1.5800. Where to drill the price will make a definite trend.
In conclusion, for all fundamental analysis indicates a strengthening of the dollar against the Euro, while you are waiting for further news as the result of real estate in the United States to be delivered at the end of the working week. And technical analysis can be seen lateralization of prices and make a definite trend. If the price drops are recommended to enter the 1.5800 short.
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