3-02-09
6:26a GMT – After the weekend the asian markets opened up the EUR/USD with a nice 100 pip bearish gap on continued strife between the Eurozone countries on how best to handle the credit crisis. Eastern countries have started to heat up the rhetoric saying that Western Europe is threatening to weaken all of Europe. Germany insists that they are willing to help but only on a country by country basis. Regardless of the words there are definite cracks in the alliance, but no more than expected. Meanwhile in the US this week investors will digest the fact that AIG is asking for and receiving another 30 billion USD to help keep it afloat.
Technically the 100 pip gap is a bearish sign, added to the lower highs the pair made all last week and the break of 1.2660 support and we have three very bearish signals. However, the pair has very strong support still beneath it all the way down to 1.2400 and is in danger of being oversold. So I am bearish in the mid-term, but bullish in the short term, especially near support or on bullish candlestick signals. Tight stops must be used if you go long as the overall bearish signals could win out.
Trading Idea: short term I am looking to buy near support at 1.2550 and 1.2500 with long targets at 1.2615 and 1.2695.
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March 2, 2009 at 12:24 pm
What are you comment on Eur/Yen?