Quote of the day: More things in politics happen by accident or exhaustion than happen by conspiracy. - Jeff Greenfield
Trading strategy: small short at 1.2425, stop at 1.2485 (0.5% risk), objective at 1.2325
Euro's weakness continues on concerns that European debt crisis is spreading. Support levels established last week at 1.2440/50 and 1.2340 have been taken out and further weakness seems to be in the cards for now - next support emerging at 1.2130/45. Potential break down below the said level should open 1.2000 and 1.1900. On the upside, minor resistance comes at 1.2340/50 followed by 1.2440/50 and 1.2535 - ahead of 1.2620 and 1.27305 (fib retracements of last down leg from 1.3095 to 1.2145. Both short-term and intra-day studies are in a bearish configuration and no change is expected on short-term basis - as a break above 1.28, preferably 1.30 is needed to signal a change in direction, both levels being too far considering the current downside pressure. Current exchange rate is 1.2286 @05:57 GMT
Support: 1.2250, 1.2200 and 1.2130/45 Resistance: 1.2340/50, 1.2440/50, 1.2550 and 1.2620 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Have a good day!