Wednesday, 23 May 2012

EUR-USD prediction may 24 2012

forex trading outlook today - EUR-USD prediction may 24 2012: EUR/USD continues to get cheaper this year, following an intangible EU summit. The pair, plagued with an enormous bearish sentiment on growing 'Grexit' prospects, broke through key technical support at 1.2620, causing the spot rate to print its lowest levels since August 2010 at 1.2545.

The single unit then rebounded on rumours that Merkel had agreed a wide deposit insurance scheme for Europe, finishing just below 1.2600, where it remains. As Valeria Bednarik, Chief Analyst at FXstreet.com states: "Wednesday was ruled by risk aversion on fears of a Greek exit and the existence or not, of contingency plans to face it."

Technically, Valeria observes the hourly chart showing indicators "still in negative territory, moving slightly away from oversold levels, while 20 SMA holds a strong bearish slope above current price."

In the 4 hours chart, Valeria's outlook is also bearish, "although indicators seem to be losing strength: corrective movements however, will likely remain limited by 1.2680 area, former strong support. As long as below that level, the pair has scope to test the 1.25 level before the week is over" she said.

Support levels: 1.2560 1.2520 1.2485,
Resistance levels: 1.2615 1.2640 1.2680

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