FXstreet.com (Barcelona) – EUR/USD is back to square in a weekly basis last at 1.2284, printing fresh session lows from session and weekly highs at 1.2322. Poor imports data coming from China widening its trade balance to a surplus of more than $ 31B suggesting domestic demand is getting weaker, with consensus now calling for a digit below 8% for next Chinese GDP coming on Friday, weighed on risk sentiment this Tuesday in Asia-Pacific. Local share markets opened to the upside but flipped to negative after data, with Nikkei lower by -0.11% at the moment.
London session ahead will be a soft one in terms of EUR macro data related to be released with only French industrial production at 06:45 GMT, followed by Italian one at 08:00 GMT. Instead, second Ecofin meetings day will cope with all the attention, after latest press conference from Brussels few hours ago. In the sovereign deb arena Greece will ask again for € 1.25 B in 26-week T-bills, as well as the Netherlands will auction up to € 3.5 B in 3 year bills at 08:00 GMT. Spain closed yesterday the 10 year bond yield above 7.05%.
According to Fan Yang, CMT and Chief Technical Strategist for FXTimes: “If price Does stay below 1.2360 (and of course 1.24), and the RSI does stay below 60, we would have a “negative reversal”. That is when the RSI high is higher (it already is), but the price high is lower. This suggests we have momentum for at least one more swing lower,” the analyst says.
Immediate support to the downside for EUR/USD comes at current levels as June 01 lows 1.2286, followed by July 06 lows at 1.2260, and Monday’s and 2012 lows at 1.2229. For the upside, closest resistance shows at recent session and weekly highs at 1.2322, followed by Thursday’s lows at 1.2362, and Friday’s highs at 1.2400.