This week starts with a general weakness on the currency trading, especially against the dollar, after the pair closed at 1.3780 on Friday and opened Sunday night at 1.3630. The euro felt its lose in Asia as well, and continues to trade on the down side breaking the support level of 1.3580 and breaking a new low of 1.3540.
The acceptance of the $700 Billion rescue plan in the US, after weeks of controversy, plus the recent negative feeling regarding the European economy, are the two main reasons that have deeply affected the currency.
This week will see a few economic events that should keep the market occupied; the FOMC minutes and Bernanke speech, the BOE rate decision on Thursday, which have already been priced by traders at a rate cut of 25 points. Traders will watch out for Bernanke comments on inflation. Analysts predict that due to the recent economic waves, FED might be forced to cut rates together with other central banks.
The economic calendar for today is empty, and therefore the markets have a change to digest all recent hurricane events from the weekend, including Paris emergency summit, where 4 of the major European economies met to discuss the Euro crisis. The news regarding hypo Real Estate failure in German also was in the menu.
EUR/USD continues to deteriorate and the next support level is down to 1.3480. The pair has suffered huge losses, and it only seems there are more to come. If 1.35 gives in, the next support level lays in 1.33.
The trend has already reached the support (1,3483) which matches with the lowest value in a year and whit a Fibonacci retracement level. I think this is going up
So it has, we´ll just have to wait and see how the market behaves as it´s become clear we can speculate a lot, but nothing is for certain
Anny I thought the same last Friday, after this big fundamental you suppose to wait a few days and get in it when everything seem clear, but Monday has been worse, so I´ll wait a few more days, I don’t want to make bad decisions. It´s totally true, the economy calendar is empty.
Just wait and watch, indeed