EU officials consider Spains bank bailout today. The yield on Spanish 10 year debt is at it’s highest rate since the June 18th closing peak at 7.158%.
Meanwhile the EURUSD spent the first 12 hours of trading with a low of 1.2246 and a high of 1.2282. The midpoint of what is a 10 day range for the EURUSD comes in at 1.2247. So true to form, traders kept the pair close to the bullish border.
In the last few hours of trading, the floor at the ranges midpoint gave way and the price declined to and through the next targets. The 1st target was the upward sloping trend line at the 1.22258 level. The price decline intially stalled at the level but has just recently fell below the key level -triggering the stops. The price has moved to and through the next targets at the 1.2211-16 area. Below that is the July 17th low at 1.2188 and then the July 16 low at 1.21746 and the low for the 2 week range at 1.2162.
Resistance now comes in at 1.22159 level where the last support was broken.
The range for the week is still a narrow 147 pips from the low to high (low 1.21746). This keeps the door open for an extension lower at some point. Traders wary of failure will be cautious. Ultimately, the larger traders who swing a balanced market to a out of balance market will be the gauge for the trend. Are you ready to move? Watch the levels.
