MORNING BRIEFING: Will Euro hold its 1.29 level against the USD?

[RTFX-Trading]

MORNING BRIEFING: Will Euro hold its 1.29 level against the USD?

[B][I][U]What’s new:[/U][/I][/B]
EURO: Thursday’s Break of the 1.29 level (against the USD) first time since May
China: Chinese Premier supportive of Euro’s Future
Equities: Asian indices in the red this morning
United States: Google reports gains, but earnings fall short of expectations
United States: Major overhaul in financial regulation as senate approves bill

[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CalE160710.gif[/IMG]

[B][I][U]Rates in Asia and Indices: [/U][/I][/B]
EURUSD: 1.2950 - 1.2889.
USDCHF: 1.0446 - 1.0409.
GBPUSD: 1.5464- 1.5391.
EURJPY: 113.20 – 112.28.
USDJPY: 87.50 – 86.97.
DowJones: 10’359.31-0.07%
NASDAQ: 2'249.08 -0.03%
S & P 500: 1'096.48 +0.12%
Nikkei: 9’431.08 -2.63%
Shanghai: 2'395.91 -1.17%
Gold: $ 1'206.45
Crude Oil: $ 75.83

[B][I][U]
Comments: [/U][/I][/B]

Yesterday’s trading saw Euro gaining support, and for the first time since last May, break above the 1.29 level against the US Dollar. Even China’s Premier Wen placed confidence in the Euro, on saying that the Euro has been and will be in the future an investment choice for China.

EUR/USD pair traded in the range of 1.2889-1.2950 this morning a clear break of the 1.2889 low is indicative of a move downwards. On one-hourly charts 1.2889 marks a point on the trend line that has been acting as a support/resistance since the 30th June. On four hourly charts RSI (an overbought/oversold indicator) indicates an overbought market at the moment.

Negative performance for Asian equity markets may be pointing towards an adjustment today. Michigan Consumer sentiment index and US banks expected to report their earnings today, might be influential on day’s direction.

Yesterday Google reported gains but gains fell short of expectations. Google reported earnings of USD5.71 per share as opposed to last year’s USD 4.66 per share, but analysts were expecting a USD6.52 per share.

In the United States, the senate approves the bill for a major overhaul of financial regulation. The bill will be placing new restrictions for the banks and the Federal Reserve, and crafts a new consumer protection division for mortgage products.


Good day,


Rudolf Muscat

Trading desk

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