Friday, May 14, 2010

EURUSD: Next Stop 2006 Lows

Well that was quick.

I definitely would have thought that the 2009 lows in the EURUSD would have provided a little bit more buying support, but that wasn't to be. As you can see from the weekly chart (figure 1) of the EURUSD, price is well below the key pivot point at 1.25674. This level is now resistance. The next stop is the 2006 lows, which reside in the zone between 1.16 and 1.19.

I will state the obvious here: market risk remains high!

Figure 1. EURUSD/ weekly


Anonymous said...

I've been watching this head and sholders form with glee for months.

Fu Manchu said...

Mind-boggling. Guy, what's your take on FXB, please?