FXstreet.com (Barcelona) - After the EUR/USD jump to 1.2319 after Hollande’s pro-euro comments, the pair quickly retraced back below 1.2300 psychological level to reach as low as 1.2270 on comments from Germany. CNBC reported that Bundesbank wants ECB to focus on price stability and Bloomberg reported that the German Finance Minister said that there is no talk about the ESM banking license going on.
The EUR/USD is currently trading at 1.2288, the June-1 swing low after the sharp decline in May. The US consumer confidence and Chicago PMI are still to be released.
“The larger frames keep signaling a downtrend as fluctuations from the last days drew a consolidation zone between 1.2230-1.2330”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a trend reversal if it breaks above 1.2400.