Euro Dollar: Pending the results of stress tests Wednesday, July 21, 2010 13:12

The approach of the results of the famous "stress tests" of European banks on Friday and set the hearing of Ben Bernanke on Wednesday, have heightened fears of investors. The chairman of the Federal Reserve (FED) will today and tomorrow before the Senate's verdict on the U.S. economy.
This morning, the euro depreciated against both the dollar and the yen.
The European currency is still penalized by the traders' fears about the results of stress test, despite the reassuring words of Dominique Strauss-Kahn. The director of the International Monetary Fund (IMF), displays some confidence before the appointment, saying that banks "are strong enough to withstand any earthquake either. It does not, however, that the tests might reveal "by here and there, small financial institutions in difficulty."

Towards the spot is approximately 13h $ 1.2810.

From a graphical perspective, the momentum remains bearish in the medium term. However, exceeding the $ 1.31 invalidate our scenario and then propel cross towards $ 1.3511.
The currency pair euro / dollar was changing yesterday in a trading range ($ 1289 - $ 1.30). The latter has been broken down. A short-term downward momentum should occur towards $ 1.2778, $ 1.2672 even.

Hourly data chart:



Daily data chart: