EURUSD: Euro under pressure. Traders nervous ahead of the Jan 25th Greek election.

 

EUR/USD: 1.1943
Most of the action took place when the retail platforms opened yesterday morning, with the Euro collapsing, in taking out 1.2000 support, triggering stops and falling quickly to a low of 1.1850 before a quick bounce back to 1.1975. Increasing rumours of a Greek exit from the EU (and possible debt default) after the January 25 election were largely behind the move, but since then the Euro has largely chopped around aimlessly, taking little notice of the weak German inflation data which was put down to the recent lower energy prices. The Euro did see another slide in early NY to 1.1885 but then later bounced back to 1.1940 as the dollar came under pressure on the back of the fall in stocks/oil prices.Technically there is little change and the medium term picture for the Euro still looks negative. In the short term though, the 4 hour charts are heavily oversold and thus filling the minor gap back to 1.2000 would not really surprise. A break above 1.2000 could then possibly head back towards 1.2100 and maybe 1.2120 (38.2% of 1.2485/1.1850). If seen it would provide a decent sell opportunity.

The downside will see decent support, below 1.1900, at the June 2010 low at 1.1876 and then at today’s brief spike low at 1.1850, which in turn comes ahead of 1.1743, where the Euro was initially pegged to the dollar in January 1999. Beyond here, once these levels are taken out, I think we are eventually heading towards parity, and lower, although that is for another day.

For today look for another session of 1.1880/1.2000.

Economic data highlights will include:

EU Services/Composite PMI’s, US ISM Non Mfg PMI, US Factory Orders.

Meta Trader – AxiTrader
EUR/USD: 4 Hour

Euro

The post EURUSD: Euro under pressure. Traders nervous ahead of the Jan 25th Greek election. appeared first on FX Charts Daily.

The post EURUSD: Euro under pressure. Traders nervous ahead of the Jan 25th Greek election. appeared first on www.forextell.com.

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