EUR- USD prediction june 1 2012

forex trading outlook today - EUR- USD prediction june 1 2012 : he euro hit a two-year low on Friday and was seen at risk of falling further in coming weeks, dogged by worries that Spain may need external aid to shore up its struggling banking sector and fix its public finances.

The euro's sell-off has gained steam this week as Spain's borrowing costs surged on worries it may need to issue more debt to recapitalise its banks, adding stress to markets frayed by anxiety that Greece may exit the euro zone.

The heightened worries about Spain have been highlighted by a widening in the yield spread between Spanish 10-year government bonds and German Bunds to euro-era highs this week, and the euro has fallen almost in lock step with that move.

The euro slipped 0.2 percent to $1.2337. It fell to as low as $1.2324 on trading platform EBS at one point, its lowest level since July 2010.

EUR- USD technical prediction june 1 2012
As the world seems to keep falling apart, and world recession as looking at global bond yields in all time lows gets closer, according to Nouriel Roubini, EUR/USD printed another fresh 2012 low at 1.2323, and lowest since July 1st 2010, following worse than expected China manufacturing PMI, last at 1.2335.

Less than an hour from final HSBC flash China PMI, USD index hits another 20-month high around 83.30, with oil slightly above the $85 mark, and gold nearing session lows around $1555, while local share markets trade in the red, Nikkei index down by -0.86%. US 10y yields offer 1.58%, and German 10y 1.21%, at record lows.

Immediate support for EUR/USD below recent session and 2012 lows at 1.2323 goes back to almost 2 years ago to around June 2010, the 30th, at 1.2304, and 1.2250 as Jun 25 lows. For the upside, closest resistance shows at current levels and yesterday's lows 1.2336, followed by yesterday's Asian session lows 1.2356, and yesterday's NY session highs 1.2390.

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