EUR/USD Breaks 1.40; Resumes Downtrend From 2007 (Big Red Candle)

EUR/USD via FXstreet.com
About two months ago I mentioned that the 5-year downtrend on EUR/USD (Euro in U.S. Dollars) was in play. It broke the trend, hit an exhaustion point, and then failed to confirm itself. Look at the huge red candle on the monthly chart! EUR/USD is now trading at 1.3991 after it hit a peak of 1.494 on May 4. Eurozone debt fears could be getting serious again, if that's what the Euro is pricing in. Spain and Italy were in the news this morning, see links on my previous post. Commodities and equity index futures are taking a hit this morning (except gold). Keep an eye on the S&P trendline when the market opens and $22 resistance on UUP (US Dollar Index ETF).

July Crude Oil -2.78% at 97.32
June E-mini S&P -1.09% at 1313.25
Gold spot -0.04%% at 1508.72
Silver spot -0.97% at 34.69
US Dollar Index (NYBOT) +0.60% at 76.30

Comments

  1. EURUSD rallied off of the 50 month moving average. News today on Greece austerity measures and aid could be bringing back buyers. Moody's still sees 50% chance though. If the monthly EURUSD trend confirms a breakout, you can't fight it. Until then, EURUSD needs to get above 1.49.

    Greece has 50:50 chance of defaulting, says ratings agency Moody's""Greece is understood to have agreed to €6.4bn (£3.9bn) of fresh austerity measures, including tax increases and accelerated privatisations. The next tranche of Greece's original aid deal, worth €12bn, is seen as vital by Greek officials to pay public sector wages and pensions."

    Source: http://www.guardian.co.uk/business/2011/jun/02/greece-50percent-chance-default

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