The Euro against the Dollar has been on fire since reaching the 1.26 area that I mentioned this last week, which if you remember the EU Buck was swiftly approaching some substantial support back from May 2008.
This week, pension fund executives QROPS experts and so on are on full alert to the broad markets next move.
Don't forget, we are still in a medium term down move with this currency pair and to be fair a longer term range. I think that the pair will climb back to round about 1.34 which would be the weekly 20 simple moving average that a large amount of longer term players will be having a look at. Plus awfully close to this is the 50% Fibonacci area of the last main down swing, which was at 1.4250. For the pivot point users among us there is also a monthly R1 and a weekly R3, so quite a lot of convergence of major support here that should attract some reaction from traders. If this area is reacted to, then a retest of the 1.26 zone should be on the cards and finally some directional call should be made for the pair.
Clearly the news events and basics will have a huge effect on the end result, but as invariably traders have an uncanny knack of pushing price to key areas at the same time major reports events are due!
As everyone knows lots of talk is going on at Davos regarding Greece and with a little luck an agreement will be reached that will avoid any major nasty defaults and another banking crisis. Now it's safe to presume that traders are pricing this in as a positive result already, similar to playing the classic buy the rumour sell the news, and everyone knows what that means? Once a decision has been reached it's possible the EUR/USD will come down via profit taking and such like. This often leaves smaller traders trying to work out what just seemed to their trading account, either way be on guard and keep those stops close.
This week, pension fund executives QROPS experts and so on are on full alert to the broad markets next move.
Don't forget, we are still in a medium term down move with this currency pair and to be fair a longer term range. I think that the pair will climb back to round about 1.34 which would be the weekly 20 simple moving average that a large amount of longer term players will be having a look at. Plus awfully close to this is the 50% Fibonacci area of the last main down swing, which was at 1.4250. For the pivot point users among us there is also a monthly R1 and a weekly R3, so quite a lot of convergence of major support here that should attract some reaction from traders. If this area is reacted to, then a retest of the 1.26 zone should be on the cards and finally some directional call should be made for the pair.
Clearly the news events and basics will have a huge effect on the end result, but as invariably traders have an uncanny knack of pushing price to key areas at the same time major reports events are due!
As everyone knows lots of talk is going on at Davos regarding Greece and with a little luck an agreement will be reached that will avoid any major nasty defaults and another banking crisis. Now it's safe to presume that traders are pricing this in as a positive result already, similar to playing the classic buy the rumour sell the news, and everyone knows what that means? Once a decision has been reached it's possible the EUR/USD will come down via profit taking and such like. This often leaves smaller traders trying to work out what just seemed to their trading account, either way be on guard and keep those stops close.
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