EUR-USD prediction may 7 2012

forex trading outlook today - EUR-USD prediction may 7 2012 : The EUR/USD is trading at 1.308 and continuing to drop as more negativity comes from the eurozone. Investors appear to have factored in a victory by Socialist challenger François Hollande in France’s presidential election, but fear a potentially chaotic Greek parliamentary election could trigger renewed market turmoil.

Retail sales in the 17 countries that use the euro rose slightly in March, driven by pickups in Germany and France, the currency area’s largest members. However, sales were down in a number of euro-zone members that have embarked on tough austerity programs A contraction in private-sector business activity across the 17-nation euro zone accelerated sharply in April, according to the Markit composite purchasing managers’ index, or PMI, released Friday. The index fell to 46.7 from 49.1 in March

EUR/USD Technical Analysis 2012/07/05

Although the EUR/USD currency pair has left the descending channel, it hasn’t started moving upwards. At the moment there is a possibility that the price may form a reversal pattern at the daily chart of the pair. Aggressive traders are advised to consider buying the pair from the current levels. If the price falls down lower than 1.3100, this scenario will be cancelled. Conservative traders are recommended to buy Euro with the stop below 1.3120 only after the price breaks the level of 1.3170. The closest target of the growth is the area of 1.3235. Judging by the daily chart analysis we can see that the price is still moving inside “triangle” pattern, however, there is a possibility that the pattern may be broken upwards.

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