EUR/USD has dropped below the 1.4020 major support line, to the 1.3968 so far. Intraday bias remains on the downside, as long as the 1.4440 minor resistance line is not broken. On the downside, since the 1.4020 major support line was broken, now look for the currency pair to target the 1.3854 major support line.
Given the Climate in Europe, it’s a Bearish Metropolis
Tracking the Euro on Greek Downgrade and Pre-Armageddon Friday
The Euro is being watched closely by investors as Greece debt problems continue, Spain protests spread, and the German economy is predicted to weaken in the second half of the year. The EU has hinted of being open to assist Greece debt problems, but no solution has been compromised so far.
German Finance Minister Wolfgang Schaeuble said that if Greece has trouble financing its debt, Germany will be willing to help but that any new aid will have to be tied to "clear conditions".
The problem is that the Greek government has a problem with accepting agreed upon financial conditions then spending too much money and asking for more.
Much of Greece was shut down yesterday as...
S&P 500 Technical Chart Analysis: Powerful Wave 3 Bull Market Rally Not Over Yet
US equity markets have continued to make higher weekly closing highs, climbing relentlessly in defiance of calls for a pullback or a resumption of the bear market. Treasuries broke down from a month long consolidation and resumed their downtrend as capital continued to exit the perceived safety of fixed income for risk assets.
The EUR USD is trading weaker overnight after a slump in Greece bond sales helped escalate worries about European sovereign debt issues.
The Euro finished higher on Wednesday after reversing earlier weakness following a weak assessment of the U.S. economy by the Federal Open Market Committee. Based on the overnight action, it appears that this was short-covering rather than new buying.
The Euro surged early in the session on Monday as upbeat feelings about the global recovery helped drive up demand for higher risk assets. Today’s strong rally was a continuation of last week’s bottoming action which was triggered by positive comments from Fed Chairman Ben Bernanke and European Central Bank President Jean Claude Trichet.