Masoud EUR/USD Forecast 9 July 12


Hello koala king and folks.

Good day to you.

Spain on Thursday, with the recent meeting of heads of EU to implement measures to support the countries involved with the debt crisis in Europe, sold three billion euro government bonds. These bonds have a maturity of three, four and ten years. Ten-year bonds paying 6.43 percent interest sold is very high and questionable. This is the fourth time that Spain offers bonds on financial markets.

The European Central Bank ECB on Thursday to prevent the worsening economic situation in the euro area decided on a 0.25% interest rate cut leaving the interest at a 0.75 percent low. Due to the recession that plagued even the strongest economy in Europe, this decline had been predicted. According to economic experts, this is a sign that the ECB is intervening effectively to prevent further weakening of the euro area economy. This is the first time since the establishment of the Euro as common currency in Europe where interest rates are reduced to below one percent.

The ECB President Mario Draghi Europe on Thursday mentioned that the goal is to keep inflation in the euro area low and its consolidation in the medium term to the border of two percent. Analysts believes that the ECB may further lower rates.

Christine Lagard, president of the International Monetary Fund IMF on Friday warned of a global economic decline. She expressed concern that even developed countries and major emerging economies are having slowing growth rate.

In America, the percentage of unemployment in this country in June remains unchanged from the previous month despite the apparent better prospects in this area.

 

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From a technical perspective:

As I said in the previous analysis and expected, the EUR/USD has finally begun to fall. As I said before from fundamental terms, nothing has changed. America’s economic situation is better than Europe and Europe’s debt crisis is still unresolved. ECB was forced to reduce interest rates and the interest rate is unprecedented.
I said in the last analysis that the EUR/USD is trapped inside a triangle and break this triangle, about 500 pips target shows, namely 1.19. This needs monitoring.

Have a great weekend.

Masoud.

 

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