Eur/Usd Monday 10-10

An article by Gus    No Comments

Hello everyone,last post for the day, just wanted to update everyone on some finals things.

First of all it has definitely been a slow day for the markets, with the bank holiday in the United States and in Canada. If we look at the euro we can see how small positive information from Europe sent the euro skyrocketing.

Once the markets opened Sunday afternoon we just saw a constant uptrend for the eur/usd. It clearly shot through the small channel forming (white lines) and then right through the green line 1.35437 which kept going until crossing 1.36776 in which it encountered some resistance and calmed down.

As we can see below once it crossed 1.36776 it turned around and started to retrace.

Below is a screen shot of a new indicator which draws out daily pivot points, which have become very helpful in showing entry and exit points. You can see how on the 15min time frame it broke through every resistance level until it retraced.

Today was a weird day with no U.S. banks open and Merkel saying they have a plan to help Greece and stop a default. No details where leaked out about what this plan was so I just don’t think it is a very solid plan.

EUR/USD Sentiment:

• Merkel-Sarkozy pledge to have a solution for the euro crisis. While they gave no concrete details whatsoever, the leaders of Germany and France decided on Sunday to get the banks in order and also find some more comprehensive solution for Greece.
• Over the weekend many reports came out on whether Greece would get any aid sometime soon. There is suppose to be a statement towards the end of the week on how much they will be getting.
• Dexia the Franco-Belgian bank, which was the first victim of Greece, is being split up and guaranteed by the respective countries.
• Italy and Spain downgraded, which brings an upward move this week on the downfall that happened on Friday.