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Originally Posted by Abou-Eddie  Today is the end of the week and it is now at 1.263. So what is your take on the new info?
By the way, the bigger story than the Euro at this point is the Yen vs USD at 95. |
Yesterday night at around after midnight the Euro was pushing up and it even reached 1.3006 , at noon today it reached 1.25 , i have never witnessed in my life such a move of 500 pips in a 12 hours period , and i am sure it never happened before .
This is a free fall and it seems there is no traders who are willing to bet on going long on the Euro right now "they dont want to catch a falling knife"
Technically speaking ,
if the euro falls below 1.25 , the next resistance is the 50% retracement from all time high at 1.60 to its all time low at 0.822 ,
which is around 1.215 , i expect a heavy battle at this area . On the upside the 1.30 is still the level to break to show a sign of life for the euro.
USD/ Yen even fell more than the EURO , from 98.08 to 90.90 , which is around 10% , which is also a record fall for a one day period .
Some people are bewildered that how come the USD is strengthening against the euro , while falling against the yen :
what is happening right now is that market is balancing itself , south east currencies were in the past few years held artificially to weak levels against the USD by the Far east central banks to boost their export market , if you remember the japanese central bank always interfered in the past to keep the yen above 100 yen ,in the past few weeks the central banks in the far east didnt interfere in the market and what we are witnessing today is the market balancing itself.
I believe the lesson learned from this financial crisis is that anything that is artificial and against the basics of the financial system is due to be doomed within a certain period of time .