Dynamic Pivots

As outlined yesterday, key levels held out the day and widely slowed down the dollar descent against the Euro and Swiss, while Cable move and Yen moved on. Think today the Euro will folllow suit and reach above 1.23, going into next week with a bullish outlook.
 
Currency markets have been inundated with fresh factors to mull over and dealers
look to be taking a more "measured" approach to that end today after reacting
violently to yesterday"s surprise revaluation. The fallout from China"s move is
still being assessed; terrorism risk remain high; economic disparities linger in
place as the US economy chugs along near trend growth rates while the Eurozone unemployment is the latest shoe
to drop, falling 1.5% on the month and down 3.3% from the same period the year
before.
1.2140 bids are seen on dips this morning, offers toward 1.2190. 1.2150 expiries
are seen this morning, helping bracket the price action near-term.
 
Dynamic Pivots


EUR/USD GBP/USD USD/CHF

Average True Range High Band
1.2143 1.7501 1.3071
Matsys Resistance
1.2098 1.7443 1.3014
Pivot Point
1.2033 1.7371 1.2966
Matsys Support
1.1998 1.7326 1.2933
Average True Range Low Band
1.1951 1.7287 1.2881
 
US Existing Home Sales for the month of June is due at 14.00GMT. A still strong 7.13m units are expected to have been sold.

Preferred medium-tem scenario remains for EURUSD to trade higher in the weeks ahead, based on rising bottoms and an inversed head&shoulder formation that has been building up over the past 5 weeks, neckline 1.2240 is key resistance, 1.2000/30 is key support and an upside projection of 1.2650 – corresponding with the 62% retracement of the pairs fall since April. Risk is on the downside today, breeching 1.200 and closing the day below calls for more downside.
 
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