EUR/USD Forecast July 6, 2012, Technical Analysis

By FX Empire Analyst - Christopher Lewis
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The EUR/USD pair fell on Thursday as the European Central Bank eased its monetary policy by cutting the interest rate by 25 basis points. The candle for the Thursday session is extremely bearish, as it closed towards the very lows of the day. It is currently testing the 1.24 level, and should provide fireworks if the nonfarm payroll number surprises the markets later today.

A breaking below the 1.23 level would be catastrophic as it would signal a continuation of the downtrend in this pair. With all of the headline risks coming out of the European Union, it makes perfect sense of this pair would continue to grind lower as there are simply far too many unanswered questions. We would sell on a break of the lows from the Thursday session, but only after the nonfarm payroll numbers come out. As for buying, we would even consider it at this point.


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