I expect that traders have smelled the newly brewed mess in Greece and potential bitter consequences for Euro, will take profits before it is too late on their short-term LONG EUR/USD trades, and start seeking a safe haven in US Dollar this week.
EUR/USD Forecast August 24-28
EUR/USD rallied hard on a mix of not-so-good mews from around the world. Has it found a new driver? The highlights of the last full week of August are inflation figures and an important German survey. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD. German manufacturing PMI beat expectations, but it was rather the bad news that lifted the pair. There is a growing fear about a global downturn. It began in China and spread to other places. With the euro now functioning as a funding currency, bad news means good news for the euro. This also bears truth when the crisis is ... (full story)