Spain's 10-year yield breaks above 6.00% but that doesn't seem to affect EUR/USD at the time of this writing. The pair is trading above 1.3120 at the time of this writing. The main focus for the European session would be on the Italian T-bill auction, totalling EUR 11 billion. Results are expected to be published around 10:10am GMT. Weak results will re-generate the risk-aversion mode, which could strengthen USD and JPY as a result.
As you may see from the above chart, despite strong gains posted in EUR/USD failure to break outside the upper end of the pennant could lead to a trend reversal. The graph could be dragged down to 1.3066 and a break outside the lower end of the pennant may confirm the downtrend is expected to continue.
Today's session is relatively light with economic data to the Italian T-bill auction may very well dictate today's trend in the FX markets.
There are great concerns Hungary will be unable to reach a deal with the International Monetary Fund (IMF) concerning an aid package. EUR/HUF gained +1.35% in yesterday's session and any further news from Hungary are likely to maneuver the pair. Talks that efforts to seal the deal have failed may cause steeper gains in EUR/HUF and USD/HUF.
Risk for reversed head-and-shoulders (H&S).
The pair is building the right-hand shoudler of the reversal pattern. A light drop is expected but as long as 0.8159 manages to contain weakness gains towards 0.8203 are foreseen.
As you may see from the above chart, despite strong gains posted in EUR/USD failure to break outside the upper end of the pennant could lead to a trend reversal. The graph could be dragged down to 1.3066 and a break outside the lower end of the pennant may confirm the downtrend is expected to continue.
Today's session is relatively light with economic data to the Italian T-bill auction may very well dictate today's trend in the FX markets.
There are great concerns Hungary will be unable to reach a deal with the International Monetary Fund (IMF) concerning an aid package. EUR/HUF gained +1.35% in yesterday's session and any further news from Hungary are likely to maneuver the pair. Talks that efforts to seal the deal have failed may cause steeper gains in EUR/HUF and USD/HUF.
NZDUSD Chart Observation
Risk for reversed head-and-shoulders (H&S).
The pair is building the right-hand shoudler of the reversal pattern. A light drop is expected but as long as 0.8159 manages to contain weakness gains towards 0.8203 are foreseen.
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