The pressure on the euro continues in the second day of large declines

Technical Analysis

EURUSD daily June 29 2022

I’m skeptical of price action around quarter-end so I don’t want to pile on here but if I were to pile on I’d say:

Europe is an uninvestible sinkhole of economic growth that’s more concerned with consolidating political power around a United States of Europe and social/green investment than in winning any kind of race. There is almost nothing happening in that continent that isn’t being done better elsewhere.

Again, I don’t want to read-though the fundamentals right now. German bund yields are flat today while US 10s are down 11 bps, so that should work in the euro’s favour. We could quickly unwind this all next week.

But on technicals alone, this weak bounce from the double bottom at 1.0350 isn’t inspiring and it’s a zone that needs to hold or we will be talking about parity in short order.

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