Monday, 18 June 2012

EUR/USD euphoria fades, dollar strengthens

The impact from the greek election results was very clear in early Monday session in fx. EUR/USD opened with a gap up that reached 1,2750 area. This however was shortlived. The pair since then is sliding and during the european openning session it pulled back towards 1,2620. The move looks corrective but still in force. The pair bounced as expected at the lower pitchfork support and after testing the middle pitch fork, is now above that resistance. As long as it holds above 1,2550 the pair will try to reach upper pitchfork resistance at 1,28 area. As noted before bears should be on high alert to pull the trigger again.

GBP/USD has reached the 50% retracement and might still has power to move towards 1,59. The form of the rise is in 3 waves until now and still considered a counter move to the huge decline. Support level is at 1,5530.

Thank you for taking the time to read this post.

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