Friday, 25 May 2012

Everyone sells EURO.....anyone left to sell?

European debt crisis has put a lot of pressure in Euro as well as european indices. Political instability in Greece, increased borrwing costs in Spain and Italy, combined with large amount of deposits being withdrawn in Greek banks mainly, create an explosive mix and a sense of an impeding meltdown in the markets. Fear of the implications of a Greek exit pushes investors and traders to short euro and put their bets in USD. 

Technically speaking EURUSD after breaking the green neckline, the target was January lows. As analysed in our previous post ( the pair has achieved our targets and bulls in euro one can say that are nowhere to be found. Support can be found near 1,2350 (middle pitchfork).  The fall from 1,33 is most probably complete and the pair will probably move sideways or even upwards to relieve some of the pressure. For now trend remains down, in medium and longer term level. In the short term we can see a bounce. Important resistances for EURUSD are the previously broken neckline but for me it is out of the question for a move back up there right now. I think we will visit lower levels in order for bulls percentage to decline even more and then will the decline end. Date of major importance is June 17th-18th where Greek election will be on the spotlight.

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