EURUSD Continues to Weaken on Greek Debt Worries

Quote of the day:“A paranoid is someone who knows a little of what’s going on.” – William S. Burroughs

EURUSD - 1.4111 @06:50 GMT

Good morning. Downside remains under pressure as recent upside pullbacks were short-lived. European finance ministers are meeting today and tomorrow and current fears that Greece will be forced to restructure its debt are dragging the euro down towards $1.40 which is a key support level, followed by $1.39 lower – the 50% retrace value of this year’s full upleg from 1.2870 to 1.4940. On the weekly charts, former resistance is currently providing support around 1.400, while the daily charts are bearish and potential rallies will probably face resistance into near-term resistance zone at 1.4300/20 and 1.4450. Given the current market sentiment, it’s unlikely that we’ll see a strong move towards 1.44 in the coming days. Anyway, looking for selling opportunities on both upside pullbacks and a break below current session low at 1.4050 is probably the best thing to do. I remain bearish on EURUSD on short-term basis, as long as the pair doesn’t return above 1.45. Today’s important events in the Economic Calendar are the Euro-zone CPI at 10:00 GMT and Bernanke’s speech later today

Trading strategy: looking to sell on potential pullback to 1.4230, initial stop at 1.4280 (0.5% risk), target open

Support: 1.4050, 1.4000 and 1.3900
Resistance: 1.4150, 1.4200, 1.4280/00, 1.4350/70
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD daily chart 5-16-2011
EURUSD daily chart 5-16-2011

Have a good day

12 thoughts on “EURUSD Continues to Weaken on Greek Debt Worries

  1. shortbustrader

    I told you something big was going to happen on the weekend :-) Although it turns out to be more amusing than alarming. Hopefully something big for next weekend though :p

    Reply
      1. shortbustrader

        LOL. The whole thing sounds too unbelievable to even have made it up. It hardly makes a difference to the world to lose one man in a corrupt organization of thousands of people. They will replace him and within two months we will have forgotten who he is.

        At this stage I am more concerned about the CHF continuing to be soooo strong. And the weather for this weekend :-)

        Reply
          1. shortbustrader

            Oh yes, I forgot you are going away. We were going to come down and see you. The timing always seems to be wrong. Enjoy yourself.

  2. Charlie

    Hi, Your strategy was perfect, as EUR hit just over 1.4230 and back now. Can I share your knowledge on how you projected this level pull back? Do you trade other currucy pairs too? Thankis. Charlie

    Reply
    1. liviu Post author

      Hi Charlie,

      I used a common fib retrace value on the potential selling point, nothing special about it.
      yes, I trade many others

      Reply
      1. Charlie

        Thanks Liviu. I can only see EUR analysis. Is there any way to see your strategies for other currency pairs? Regards Charlie.

        Reply
          1. Charlie

            Thanks for valuable information. If you need an assistance, I would like to put my name on your list. I trade in Asia time and early London session. Keep in touch.

  3. Pingback: EURUSD Recovering; Still Far Below Key Resistance Levels | FX Trading Blog - innerfx.com

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