This price action on the EURO and the downward pressure it is applying to the AUSSIE and the POUND is mind-boggling. When the EURO came in last night and went up to the 1.2660 area, my initial thought was, “Well, this could be the setup for the money trade”. Now, that thought is out the window, because at the time of this positng the EURO is testing a key technical level that it had ripped last night and is off over 120 pips from the high. The AUSSIE and the POUND have fought this massive down draft with tooth and nails, but they are both succumbing because both are off over 50 from last nights highs. Of course, the DOW has been effected also.
Actually, this makes sense. Last week, the word was it would be between 50 and 100 billion, and the word is now that is at the upper end of the range. One has to think that things are worse than was previously perceived, and the question becomes, what would you do with your money in the Spanish banks? And don’t forget the Greek elections coming up on later this week.
Key Technicals levelse are 1.2525 in the EURO and 1.5515 in the POUND.
