Euro Testing Trendline Support; Be Aware Of Breakdown

3. Juli 2020

Good morning traders,
Markets are slow because of holiday in the US, so we may not see any big changes in flows through the day. However, we should pay attention to BREXIT especially after latest Merkel comments, that they are preparing on every level for a no-deal Brexit. This cannot be positive for the euro or gbp, so be aware for a potential weakness on these two, especially against the commodity currencies while stocks remains strong. Regarding the euro we also need to look at German bund, where reversal from the recent June low is in five waves followed by A-B-C flat meaning that bulls can see more upside while euro may break that red trendline support. A daily close is important for weakness; below trendline can open room for 1.1.

GH