By: Rab Jafri
The Euro zone debt crisis is intensifying by the week and while the euro had been relatively resilient until last week, the recent price action has been clearly bearish. With the debt crises escalating, look to sell the Euro on rallies. The psychological level of $ 1.30 was easily broken last week and downside momentum remains strong. There could be a relief rally as the German Parliament signs on the Greek package, but the contagion risk remain strong. The Euro is due for a correction; look for a bounce back to $ 1.2930 mark (38.2% on Fibonacci), which is a good selling point. The next target is $ 1.25, supports can be found at $1.260, $ 1.2460 and $ 1.2430.