EURUSD, Daily
EURUSD price, now having touched the lower end of my initial 1.0970’s corrective bounce target, should open up the way for a 1.1030’s lower top on any clean break of the 1.0970’s. Daily chart price action is still well contained within my downward sloping bear channel; Stochastic Oscillator analysis supports a further corrective bounce before any resumption of the daily chart downtrend. Traders may look to open new short positions within the 1.1030’s for a measured move (March lows – May highs) that may extend price lower towards a retest of the 1.0840’s.
Standard & Poor’s on Tuesday upgraded Greece’s sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries initial agreement to start negotiations with the country on a third bailout. The probability of Greece leaving the Eurozone is less than 50% , however the country may still face shrinking GDP.
U.S. Fed’s annual industrial production revisions showed production knocked down to 0.2% in June, versus the prior 0.3% print, while May was left at -0.2%, with April revised up to a -0.3% pace from -0.5% previously. Capacity utilization for June was revised down sharply to 77.8% from 78.4%, while May was nudged to 77.7% from 78.2%, with April at 78.0% versus 78.5%. At the margin, the data add to the argument for the FOMC to delay a September rate hike.
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