The EUR/USD pair continues to be the one that everyone talks about, and the fact that the Greeks simply seem like they cannot find some way to find a consensus in government will continue to push people into the Dollar. The pair simply looks weak, and the recent downturn has been a long time coming.
The markets seemed to be able to shrug off a lot of issues as the Forex traders around the world simply ignored most of the seemingly obvious problems in Europe. After all, there are many zombie banks out there, and the Spanish ones are by far the most well known. The ratings agency Moody’s also downgraded over 20 Italian banks at the end of the Monday session and this will only continue to hurt the overall risk on attitude of the markets in general. The Euro will certainly pay for this, and the absolute mess that is European politics at the moment will be a problem for the bulls.
1.29 gives way as well
The 1.29 level was the absolute bottom of the 1.30 support “area”, and as it was blown through during the session on Monday it appears we are ready to continue much lower. The pair doesn’t show much in the way of significant support until we reach the 1.26 level, and as a result I am expecting to see that level reached over the next several sessions.
Bounces will happen as hope burns eternal with Euro bulls, but we could very well be at the start of the end for the Euro in general. The pair should see 1.30 as resistance now, and I am selling any rally until we close well above that mark. As for buying – I’m not.
.png "EURUSD Daily 51512")
The pair previously had been in a descending triangle, and it measured a move down to the 1.25 level. Although that is the case, I do feel that 1.26 could cause problems for sellers. I believe that the pair is certainly going down, and I am looking to add to my short positions at this point in time…..I am sure I will get that chance.