June 15, 2010
Euro Reverses Up after Testing 1.2164 Retracement Level
The September Euro is rallying this morning after testing the 50% level at 1.2164 overnight. The actual low of the break from Monday’s high was 1.2167. The ability to
recover after early session weakness is a sign that investors are shrugging off yesterday’s news that Moody’s downgraded Greece’s debt. The strong turnaround has put the market in a position to take
out yesterday’s high at 1.2297. The main trend on the daily chart will remain down, however, until the May 28
top at 1.2453 is violated.
The Euro surged early in the session on Monday as upbeat feelings about the global recovery helped drive up demand for higher risk assets. Yesterday’s strong rally was a
continuation of last week’s bottoming action which was triggered by positive comments from Fed Chairman Ben Bernanke and European Central Bank President Jean Claude Trichet.
Bernanke told the Senate last week that he believed that …
