mikeyjerou Posted May 22, 2012 Report Share Posted May 22, 2012 FXstreet.com (Barcelona) - After trading overly bearish since the first ticks of May, the EUR/USD was given a strong boost last Friday, venturing on an aggressive upleg to end the week printing a sizeable bullish outside day. On Monday, after a move down towards 1.2725, the spot rate overshot the 1.2800 to currently levitate just around it. Looking at last week's price action, Chirs Capre, suspects that recent EUR/USD appreciation was, as he notes, "a combination of the market being heavily oversold from selling off 13 of 14 days, but also possibly some predatory stop hunting with the market being massively short and having a very illiquid market to work with on Friday, thus making it an ideal day for a stop run." Chris adds, "even though there was a strong density of buy orders from 1.2640 – 1.2750, we are suspecting any significant bounce to fade just north into the 1.2860 – 1.2900 sell zone. We simply feel the Euro is just too vulnerable from all sides and the market will be happy to sell any rallies, especially if any more bad news comes out. We will look to sell rallies into the 1.2860-1.2900 sell zone mentioned earlier so watch for price action triggers here." Quote Link to comment Share on other sites More sharing options...
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