EURUSD - Trends, Forecasts and Implications (Part 1) - page 2242
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So yes, pre-trend triangle with targets at 1.21 or below
I wrote about the move down now not a major correction after the breakdown of the triangle resistance trendline and then a flight to 1.185
On the eu went into the buy.... just at the bottom...
_ DJ FOREX Newswire
OVERVIEW: Concerns over the eurozone have dropped the euro to a new four-year low
The euro fell to a new four-year low against the US dollar on Tuesday. Worries about the euro zone's banking sector, the debtor countries and the future of Angela Merkel's coalition put pressure on the single European currency.
The investor sentiment was also negatively influenced by the weak Chinese data, concerns over the possibility of resignation of Japanese Prime Minister and the attack of the Israeli armed forces on ships bound for the Gaza Strip.
The latest wave of the euro's fall against the US dollar can be seen on this chart:
http://www.dowjoneswebservices.com/chart/view/4058
Investors reacted to all these events with another withdrawal of funds from risky assets, which resulted in a sharp fall in Asian and European stock indices.
The latest set of troubles started on Friday when Fitch lowered Spain's sovereign credit rating and triggered a new wave of sales of eurozone debt.
The European Central Bank also added fuel to the fire, as its recently adopted policy of buying government bonds has caused discord amongst the bank's management. For example, the German central bank fears that these measures will negatively affect the ECB's reputation.
The ECB also warned the Eurozone banks that within the next 18 months it could write off another 195 billion Euros of bad debts. Concerns about the impact of this development on banks' balance sheets mean that the funding situation for eurozone banks could deteriorate further, seriously hampering the region's economic recovery.
Meanwhile the German ruling coalition came one step closer to collapse following the unexpected resignation of German President Horst Köhler. This was further bad news for Chancellor Angela Merkel, who is already struggling with resistance from smaller coalition parties to plans to raise taxes designed to finance the country's budget deficit.
Many German citizens object to the EU bailout of Greece, and they expressed their displeasure over it during the last regional elections.
"The ruling coalition in Germany may be closer to collapse than many think," warned Hans Redeker, head of currency strategy at BNP Paribas SA in London.
The political situation in Japan is also a threat to global investor sentiment. Prime Minister Yukio Hatoyama may well be forced to resign ahead of next month's elections to the upper house of the Japanese parliament. Recent polls have shown his government's popularity plunging to 22% after he failed to keep an election pledge to relocate the US military base.
The market sentiment was not helped by Israel's attack on ships bound for the Gaza Strip, which caused widespread global censure.
News from China also contributed to the general pessimism. China's purchasing managers' index (PMI) fell to 53.9 from 55.7 in May. This fall and the warning that the Chinese real estate market bubble is worse than in the US and the UK increased fears about the prospects for a global economic recovery.
Investors began to get rid of risky assets and in this backdrop the euro/dollar pair fell to 1.2120 as of 09.30 GMT on EBS against 1.2322 on Monday evening in North America. This was the lowest level in four years.
The euro/yen pair traded at 110.11 versus 112.66 and the dollar/yen pair traded at 90.80 versus 91.44.
The dollar/Swiss franc pair traded at 1.1699 versus 1.1560, although Switzerland reported that its GDP grew 2.2% in Q1 compared to the same period a year earlier. Economic growth for the period was forecast at 1.7%.
The British Pound/Dollar pair fell to 1.4463 against 1.4530 although the latest UK Purchasing Managers' Index /PMI/ remained at 58.0 in May rather than falling to 57.5 as expected. Thus, the index remains at its highest level in 14 years and signals that manufacturing activity remains strong.
However, the pound may have received some support from indications that Prudential's planned $35.5bn purchase of AIG's largest life insurance unit in Asia is crumbling. News of the possibility of such a deal earlier had a negative impact on the pound, given the scale of the dollar purchases it is likely to involve.
-Author Nicholas Hastings, Dow Jones Newswires; 44 20 7842 9493; nick.hastings@dowjones.com; translation by PRIME-TASS; +7 495 974 7664; dowjonesteam @ prime-tass.com.
Date of news: 01.06.2010 14:27:34
Looks like all the negatives are over..... up^
^
Also baited a bit)
Also baited a bit)
for nothing
for nothing
The red line on the chart is breakeven
I'll take the rollback, if it doesn't work out, it's +0.01.
* so there's nothing to be afraid of *
for nothing
It wasn't for nothing... closed the buy, opened the sell.
Folks, would you like to take a closer look at the Aussie? What do you think of the soon to be bai? I think the momentum is complete.
Well, you talked me out of it. And you lost 400 points. And I'm good too - I listened. It was 0.8120 when I wrote. 0.8540.
It wasn't for nothing... closed the buy, opened the sell.
Where did you sit down?