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Stops below 1.4900 tripped off in EUR/USD

By   || November 12, 2009 at 15:15 GMT
|| 3 comments || Add comment

I’m guessing that news that Germany is to inject an additional EUR 3 bln (as part of an effort to clean up its balance sheet) into West LB helped set off the latest rush for the exits in EUR/USD. The thinking is that there are likely more lenders lined up right behind them. There has been a general unease that European banks have done less capital raising over the last year than their US and UK counterparts and could be more vulnerable if the global economy takes a double-dip.

EUR/USD has dipped as low as 1.4883 so far; next support is at 1.4850. The lower we trade, the more nagging the fear that we’ve topped again at 1.5050/60. With the market very long EUR/USD, a significant correction is always a possibility.

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3 Responses to “Stops below 1.4900 tripped off in EUR/USD”

  1. Adje on November 12th, 2009 15:35 GMT

    GBP/USD reached it trendline today on the 4 hour chart and bounced off.

  2. Adje on November 12th, 2009 15:37 GMT

    GBP/USD daily tenkan @ 1.6552. Prefer a daily close above that level.

  3. Adje on November 12th, 2009 15:51 GMT

    Here is the image.
    http://i796.photobucket.com/albums/yy242/seoatti/GBP-USD.jpg
    I think retest of 1.6651 or so.

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