Previous: EUR/USD – Waiting for Breakout From Consolidation Range (5/28)
EUR/USD Chart 1H 5/30/2012 6:43AM EDT


The breakout from consolidation came with a break below 1.25 in the 5/29 US session. Then there was a end-of-session pullback to 1.25 with bears standing ground. After this picture-perfect breakout confirmation, the market fell lower throughout the 5/30 Asian and European session now trading just below 1.2450 as we gear up for the US session.
While a conventional range breakout projection targets the 1.2390-1.24 level. The breakout really opens up the 2008 low at 1.2330. We might anticipate some consolidation, or correction at levels around the 2008-low, but there is still downside risk toward the psych level of 1.20 and the 2010-low near 1.19.
Spanish 10-yr yield continued to rise, now at 6.6. Manwhile the Spanish/German 10-yr bond yield spread also widened to 535 from 523 as this number continues to push above record levels. Italian auction did not raise the target of 6.25bn euros in its 5-yr and 10-yr government bond auction. (raised 5.73bn euros)
Join the Market Intelligence Briefings to get fundamental analysis, technical setups, trade plan assessments for EUR/USD, and other currency pairs.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.