The EURUSD dropped significantly on Portugal downgrade yesterday. Price break below 1.3450/35 key support area, confirms technical bearishness targeting 1.3100 this week. Trichet is going to speak today and it make sense for me that probably he will say something “positive” about the Euro zone or the Euro to prevent further and faster drop. Whether market will believe it or not is something I’d like to see. Immediate resistance at 1.3380 area. Break above that area could trigger further bullish correction testing 1.3450 as correction after significant bearish move should not be a surprise and the fact that price already in extreme oversold area, but I am in bearish mode for this pair. Initial support at 1.3250/70 area. Break below that area could trigger further bearish momentum towards 1.3100/50 area.
©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.