EURUSD—no reason to buy

One has to search to find reasons to buy the Euro. I expect it will continue to decline into the 1.20s—not immediately and not without some rallies. However, a rally looks unlikely today.

I shorted this morning at 1.3222. This is right near the first support level I wrote about yesterday and it was clear it was faltering there. It's most likely going to hesitate around the current level of 1.3160 (as of 9:10 AM EST) down to 1.31 but after that, the next support is 1.3056 and 1.2969 (Dec and Nov lows). In the unlikely event of a rally, expect resistance at 1.3244, then 1.3430 and 1.3500. You can see where it attempted to break 1.3244 on the hourly chart below before selling off.













© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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