Forex Signals - EUR/USD Greek Bears Power the Markets

By IBTimes Staff Reporter | April 23 2010 1:32 AM

Daily Outlook: Fueling that bearish fire was news that Moody's Investment Services downgraded Greece's credit rating to investment-grade and left the door open for another cut in 2010. This increases the likelihood of Greece tapping the emergency bailout (though honestly who didn't see that coming?) and further weakens the Eurozone's unity. On top of that there is uncertainty in the fold with other Eurozone countries (PIGS) that further dampens the euro.

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Technically we are in a very bearish channel (see orange parallel channel lines below). This channel is even more prominent on the 1h charts. I expect the pair to rebound slightly tomorrow but I will not be taking a long - maybe if it was early in the week but not on a Friday. We've got an interesting confluence of resitance lines around 1.3300 - the 23.6% retracement of the Apr 14 high and Apr 22 low, former daily resistance and short-term bearish channel resistance that makes for a juicy shorting opp.

Trading Idea: I'm out for the day, I've made my share of pips this week on all my pairs, but for those aggressive traders I expect a rise in the EURUSD to cool off oversold levels - there was a 4h doji this mornign on the 0:00 candle that could be starting this correction. However the primary trade would be for a SHORT in the vicinity of 1.3300 with targets at 1.3375, 13350, 1.3325 and 1.3300 for 100 pips profit.

P.S. Lots of good candlestick signals yesterday and a lot of news coming out today so be careful. Happy pipping. Remember - patience pays!