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Originally Posted by Abou-Eddie  You could have made the same argument when it crossed the 1.50 and the 1.40 levels. These are psychological levels which will always bring in buyers which creates a short term stubbornness and price levels hover around there until the resistance is broken and then you see quicker movements. In this case I would give it more a range of 1.28 to 1.32 and when the resistance breaks you will see the 1.23/1.25 levels very quick. |
We are now at 1.24 and this morning we were under 1.24 at 1.2360. This is despite analysts expecting a decrease in interest rates by 1/2 pct in 2 days. The resistance level is very high. I think the 1.20 psychological level will be crossed very soon, perhaps this week. It is almost a mirror image of what is happening with oil which went down even after output being decreased. It is now at 63, expect it to reach 60 when the euro reaches 1.20.