Friday, May 14, 2010

EURUSD--where have all the flowers, I mean bulls, gone?

Euro has continued to fall in what has to be one of its worst weeks ever. The low so far this morning is 1.2432. There was a support level at 1.2456. The pair has managed to climb to 1.2486 but it doesn't look at all certain that this is going to hold. I've closed out most of my position this morning at +506 pips. I can always get back in if it ever rallies or just jump on the falling elevator if it continues to fall.

Next support is 1.2329. However, remember that 1.25 has served as a magnet line in past years and is likely to do so again. In addition, it's not going to fall straight down so a rally is coming. Even for those who believe that it will go to parity (and I think it's possible) it won't happen next week. Resistance is at 1.2574, 1.2684, 1.2739/60, 1.2803, 1.2880, 1.2963 and up but it's not likely we'll see those levels today anyway.

No chart, today. I'm traveling and in a bit of a rush.

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