EUR/USD analysis (July 06, 2011)

The Euro continues to consolidate ahead of the ECB rate interest tomorrow. We have seen fresh downside pressure yesterday after Moody’s came out slashing Portugal’s rating on risks that the country may need additional aid.


EUR/USD : daily chart

The pair has been well capped ahead of 1,46 validating a triangle formation on the daily chart. It this resistance holds, we might see a continuation of the move to the downside towards the 1,42 area.

We don’t expect much volatility until tomorrow.