Trading strategy: looking to sell at 1.3100, stop at 1.3160 (1% risk), objective at 1.3000
The euro continued to collapse on speculation the crisis that began in Greece is spreading - Spain being in focus due to rumours which were later negated by Spanish PM Zapatero who said that the rumour is complete madness. One might get the feeling that things are almost certain once they are officially denied. Speaking of current market conditions - the fast euro decline since Monday clearly shows how last weeks' falling knife became a falling chainsaw as yesterday's intra-day decline was straight down, lacking any pullback of more than 25 points. The 1.3000 psychological barrier was breached and provides the first resistance today, followed by 1.3070/00 and 1.3150 higher. If the euro will manage to recover some lost ground, gains towards the 1.3100-1.3150 won't affect the short-term momentum since it is highly bearish and a major catalyst is needed to push the euro towards 1.3500 where a switch in current sentiment would occur. Meanwhile, selling within the 1.3100-1.3150 is likely to be the safest bet, next downside pit stop being at 1.2750-1.2800. Current exchange rate is 1.2979 @06:23 GMT
Support: 1.2935/50, 1.2900 and 1.2800 Resistance: 1.3000, 1.3070/00 and 1.3150 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish
Have a great day!