Since the beginning of the trading week, the EURUSD currency pair has been neutral and trading within the scope of a pretty tight price range -1.3420-1.3443. The price range was formed during yesterday's trading sessions. Today is not exception. The currency pair remains neutral. The price keeps on fluctuating to and fro – from top to bottom and back.
During the first part of the trading day, we could witness controversial economic data from the Eurozone. Firstly, Germany's import price index gained some value – from 0% up to 0,2% in June, according to Destatis. Further on, the report was followed by th INE's stats on retail sales in Spain . There was a slowdown from 0,5% to 0,2% in June.
Meanwhile, the 10-year German bond yield keeps on going down. In particular, the yield nearly touched the all-time low. The 10-year Benchmark bond yield dropped by 2 basis points or 0,02% down to 1,13% for the first time since 1989. The previous record was set in June 2012, when the yield dropped down to 1,127%. This happened when the Eurozone crisis escalated due to the financial and economic instability in Greece coupled with rapidly growing debts of Italy and Spain , which triggered a sellout of Greek, Spanish and Italian bonds. This was a major threat to the currency union.
Since then, the yield as been stable until recently. This happened because the ECB President Mario Draghi promised to defend the Euro with the help of unconventional measures, including bond purchases in the Eurozone.
EURUSD during the second part of the trading day
Masterforex-V Academy has just conducted a comprehensive analysis of the H1 chart of EURSUD to find out the near-term prospects of the currency pair. The current state of affairs looks as follows:
The currency pair has just pinned through the top of the mentioned 1.3420-1.3443 range. However, the price exceeded the top only by 1 point, which means that the range got 1 point wider - 1.3420-1.3444. At this point , 1.3444 is a new intraday high. The break is false since the price failed to consolidate above the top of the range. The volatility is still moderate without spikes and sharp swings.
The bias is till bearish, which means that the bears are still stronger and stay in control of the situation. At this point, a break and consolidation outside of the range will determine the near-term tendency.
