Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Daily Outlook June 12, 2012

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The EUR/USD continued to be the hotbed of problems in the Forex markets on Monday as the original gaps around the FX markets got reversed, and this market certainly wasn’t any different. It appears that the short covering rally was just that, and as traders looked at the deal for the Spanish banks they liked the “solution” less and less.

As a result, we are now in bear mode yet again. To be honest, I expected to fade the rallies and even wrote as such. However, I didn’t expect the rally to fade after roughly 9 hours. I assumed there would be a day or two in it at least. The fact that this reaction was reversed so quickly is indeed a very poor sign for the Euro bulls out there. (Are there truly any left at this point?)

The Irish are now talking about how unfair their deal was, and that it should be retroactively worked out to mimic the Spanish deal. No surprise, as the whole idea that 17 nations can be sovereign and also under the same fiscal umbrella is unrealistic. This is becoming more and more obvious every day, and now instead of everyone looking at the EU and thinking how great it is that Germany is going to life everyone else up, they are starting to look at the European experiment in the view of it is only as strong as its weakest member – and that’s pretty weak at the moment.

1.25 get sliced through – again


The move on Monday was a strong one, especially considering that we saw a gap get filled and more – something that normally doesn’t happen. The reaction to the Spanish bank bailout isn’t a good one, and it now looks like we are going to fall much more over time. Because of this, I see absolutely no reason to change my strategy at this point. Adding to this mess is the fact that the Greeks are going to be voting again this weekend. In other words – there is a ton of uncertainty again.

EURUSD Daily 61212

I am selling rallies when they show weak candles on the 4 hour charts all week. The pair is simply a “sell only” one for me at the moment, and this won’t change until we see a daily close above 1.30 as it would show a serious swing in momentum.

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews