FXstreet.com (Barcelona) - The EUR/USD already rallied by around 80 pips, from 1.2053 to 1.2134 as the European session opened, triggered by rumors that the ESM is getting a banking license. The pair is holding that position and threatening further upside despite the weaker than expected business climate data in Germany, with the July figure falling from 105.2 to 103.3.
Good news coming from Italy is the improving consumer confidence from 85.4 to 86.5 in July, while the sovereign gets attacked by concerned markets and its people faces strong austerity measures.
“Bullish divergence, forming on hourly chart, may signal corrective action before attempting at 1.2000, with 1.2100/40 zone offering initial resistance, ahead of more important 1.2200 zone, break of which is required to provide relief”, wrote Windsor Brokers analyst Slobodan Drvenica.
Good news coming from Italy is the improving consumer confidence from 85.4 to 86.5 in July, while the sovereign gets attacked by concerned markets and its people faces strong austerity measures.
“Bullish divergence, forming on hourly chart, may signal corrective action before attempting at 1.2000, with 1.2100/40 zone offering initial resistance, ahead of more important 1.2200 zone, break of which is required to provide relief”, wrote Windsor Brokers analyst Slobodan Drvenica.
