Euro Exchange Rate News Index

The euro dollar exchange rate is 0.22 pct up on Tuesday's close; EUR/USD is seen at 12885 at 9:30 in London.
The euro pound exchange rate is 0.07 pct higher at 0.8555.
The euro Australian dollar exchange rate is 0.7 pct higher at 1.3467.

(These rates come from the wholesale markets - your bank will affix their own discretionary spread to the figures. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering more currency. Find out more here.)

We reported just how important today's employment numbers would be for the euro in our earlier report. It turns out that bad news for Germany is bad news for the euro only part of the time!

German unemployment for May was up 21k, the market expected a 5k rise, unemployment rate steady at 6.9. This is a hefty miss.

It seems to us that the only way to make any sense of the euro, and indeed, other currencies is to focus on the technical charts.

A recent analysis of price action in the euro dollar exchange rate suggests a bounce higher to 1.3 is indeed possible.

Mingze Wu at Oanda says:

"After rebounding off the 38.2% Fib retracement, price completed the final leg of the Head and Shoulders Pattern. However, the neckline has proven to be too strong, with price bouncing higher towards 1.30 last week.

"After selling activities this week, we’re now back towards the neckline once more, with a potential break that could take us all the back to 1.20 with 1.25-1.27 as interim support along the way.

"Stochastic readings are pointing lower after forming an interim stoch peak just when the rebound off 38.2% Fib happened. Based on stoch alone, it is plausible where price may fall from here, bringing stoch line deeper into Oversold region and then bounce back higher once more when price hits 1.25 – 1.27."

Wu hits the nail squarely on the head when saying currency traders don't appear to care much about the Eurozone at present:

"Fundamentally, Euro-zone is not gaining much attention recently. News headlines are mostly silent about the Euro-zone crisis despite the problem being far from resolved.

"A lot of the recent selling activities can be attributed to the strength of USD in the wake of higher US stocks.

"With US stocks continue to look strong, should Greece and other peripheral Euro-zone country re-enter the spotlight once again, the sell-off in EUR/USD may accelerate even faster, which is in line with the neckline breakout scenario as indicated via the Weekly chart."