EUR/USD analysis (July 07, 2011)

The pair has validated a descending trendline in the beginning of the week and been under pressure since with an acceleration of the decline yesterday on Eurozone debt concerns.

EUR/USD : daily chart

The market is now struggling with the 1,43 level, consolidating its sharp move from yesterday (150 pips).
We will probably have to wait the ECB rate decision and M. Trichet speech in order to see a significant move.

Next target is given by the bottom of a daily triangle around 1,42. This level should be tested before the end of the week unless 1,43 offers a strong support.

Once again, wednesday has been a very active day although we thought market participants would wait for today’s rate decisions.