Euro recovery from 1.4095 lows on early European session has been capped at 1.4180, and the pair has pulled lower afterwards, giving away previous gains and returning to 1.4100 as investors square positions ahead of the release of EU banks' stress tests.
On the downside, the pair might find support at 1.4095 (day low), and below here, 1.4035 (intra-day level) and 1.3950 (intra-day level). On the upside resistance levels lie at 1.4200 (day high), and above here, 1.4280 (Jul 14 high), and above here, 1.4370/75 (Jul 7/8 highs).
The results of the stress tests could determine Euro direction, according to Kathy Lien, Director of Global Research & Analysis for GFT, with 15 being the magic number: "If more than 15 banks fail, the EUR/USD could extend below 1.41. If less than 15 banks fail, the EUR/USD will rally."
The results of the stress tests could determine Euro direction, according to Kathy Lien, Director of Global Research & Analysis for GFT, with 15 being the magic number: "If more than 15 banks fail, the EUR/USD could extend below 1.41. If less than 15 banks fail, the EUR/USD will rally."
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