The EUR/USD pair did almost nothing on Friday, which of course is a surprise as it was the Good Friday holiday. The liquidity just wasn't there, so as a result the markets didn't do much. A bit of the day, we are above the 1.28 level, but this is hardly any type of victory as I have to question whether or not we would've broken through 1.27 if the Friday session was a normal trading day.
It's down at the 1.27 that I see massive support. If we can get below that level, the Euro will take an absolute beating at that point. Alternately, I think that level will offer enough support in order to form some type of a bounce though. Because of this, I think that the pair will offer selling opportunities at higher prices, as I certainly wouldn't be bothered by in the Euro at this point.
1.30 still matters
In my opinion, the 1.30 level still matters significantly. I think that if we can get a bounce up to that area, this could offer an excellent selling opportunity in this market. After all, we could be finding ourselves in a bounce mode, but only short-term as soon we will start facing the warmer months and the lower liquidity in the markets. Once the beginning of June comes, markets will settle down drastically unless of course there some type of financial crisis. Having said that, we can exactly count that out.
.jpg "EUR/USD Technical Analysis April 1 2013")
With the Europeans making a massive blunder of suggestion the depositors have to recapitalize the banks in Nicosia and Limassol, there will be a lot of suspicion with the peripheral countries, and people will be very nervous about keeping money in Spanish, Italian, Irish, Portuguese, and especially Greek banks. If they did it in Cyprus, what exactly is to stop the ECB from doing it in one of those cities? Because of this, I believe that the Euro is doomed for a while. After all, if you had millions of dollars, would you feel safer with that being in New York or Lisbon? I will be selling rallies as they come.