Monday, 11 June 2012

Spanish aid pushes euro higher!Will it hold?

After the news announced on Saturday regarding the financial aid to Spain and its banking system, EUR/USD prices soar to new highs relative to Friday's session. The pair is trading late sunday near 1.27 after having opened with a gap up since it closed last Friday just above 1.25. Support lies now at Friday's low near 1.2430. The move from June lows still looks corrective as all moves are overlapping. There is no clear impulsive wave and as mentioned in previous posts, correction targets are 1.2650-1.27 and bears should be ready to pull the trigger again. The green support trend line should be the first alert for a trade signal if broken. The pair continues to make higher highs and higher lows. The correction finds strong resistance at 1.27-1.28 level. Now at 38% retracement from 1.3280, this could very well be the end of the rise. At these levels I would favor closing long positions and waiting to see a signal to go short again.

Thank you for taking the time to read this post.

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