Quote of the day: It takes as much imagination to create debt as to create income. - Leonard Orr
Trading strategy: looking to sell at 1.2350, stop at 1.2420 (1% risk), objective at 1.2200
After a second round of testing the intra-day resistance region between 1.2415-1.2450, the euro failed to hold above support at 1.2350 and resumed the decline, printing a fresh low at 1.2143. Yesterday's sell-off was fueled by Germany's ban on some speculative naked short-selling, event which triggered concern that Europe's debt crisis will worsen. Risk aversion continues to spread across the board and the carry trade instruments are weakening - the Aussie dollar trading near .8900, the kiwi dollar into the .6850 region after breaking the .7000 psychological support 2 days ago, EURJPY and GBPJPY being highly affected as well, trading near recent lows reached 2 weeks ago on May 6th, when we all know what happened. Today's European trading session might be interesting due to markets' reactions to Germany's ban on naked shorts. Talks of potential ban of EUR derivatives that don't hedge against risk are also doing the rounds. So, one gets to ask what's next? Ban all internet sites that mention sell EUR ? Current exchange rate is 1.2200 @06:05 GMT
Support: 1.2200, 1.2145/50, 1.2100 and 1.2000 Resistance: 1.2300, 1.2350 and 1.2415/50 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Have a good day!