By: Christopher Lewis
As per usual, the EUR/USD is full of drama. In a sense, this pair has been one that cannot be traded for more than a few minutes at a time, and as a result it has been liable for numerous account blow ups in the Forex world lately.
The headlines continue to push the pair around, and the Greeks are at the center of all of this mess. However, it should be noted that there are plenty of blame to be shared in the European Union for the current problems, and the Greeks are only the tip of the iceberg. However, in this new world that we find ourselves in it is difficult to focus on anything more than the next couple of days, and the inflow of high frequency trading the Forex markets are starting to become even more erratic than before.
The Tuesday session saw a cancellation of the Wednesday meeting between EU Finance Ministers to debate whether or not the Greeks had cut enough to warrant the bailout funds. The announcement sent the Euro lower, but in the late hours the announcement that the presumed PM going forward would carry on with the austerity provided a boost to the Euro. As usual, it was all based upon rumors and headlines in this pair.
38.2 And 1.3250
The 38.2% Fibonacci level still looms large, and the 1.3250 level is the level that the bulls must overtake in order to push the pair higher. The 1.30 level runs down to the 1.29 level as support, and it is in this range that the pair continues to grind away in.
.jpg "EUR/USD Daily 2/15/12")
I personally believe that overall the pair should continue lower, but the erratic nature of the pair has made shorting it just as painful as buying it at times. The overall picture in Europe isn’t one that is going to be fixed anytime soon, but as long as the market is in short-term mode, this pair can only be scalped in this zone if you are truly interested in trading it. Quite frankly, most traders I know are avoiding it and trading other pairs, but there will always be focus on it as a guide to overall direction of the Euro against all assets.