PIIGS has done it again.... the ultimate driving force behind E$'s depreciation!
Will Greece or even Spain opt out of the E$? Will and can Francois Hollande backpedalled on all the aid agreements made by the Merkozy pair?
Until such time when we get the answers, E$ will continue to be a sell.
Back to the technicals...... E$ has finally succumbed to pressure and staying convincingly below the neckline at 1.3000. The inability to close the gap at 1.3065 to 1.3080 is a strong signal that the bears are in full control for now. Short to longer term momentum are pointing down now which has increased the probability of further downside pressure.
For today, 1.2850/70 to hold and 1.2960/80 to cap (a break above 1.3000/10 weakens near term bearish view).
1. If 1.2850/70 is being tested ahead of 1.2960/80, take profit on your E$ shorts and look to sell again
2. If 1.2660/80 is tested first, add on to E$ shorts
I am looking at 1.2750/1.2780 as initial target for this wave.
Note: Fed Chairman Bernanke will be speaking tonight at 21:30. This could be the catalyst if the market had not moved throughout the day.
 |
| E$ mirror image |
Update1: E$ shorts take note that downside momentum is waning and be mentally prepared for a pull back towards 1.2980/00. However, no change in overall bear trend.
No comments:
Post a Comment