DislikedActually I did... anyway - can we now talk about bear or at least bearish? ARe we eating bull sausages?Ignored
This was mostly driven by the BOJ intervention but continued by the following:
1. The unavoidable realization that the EFSF box is empty and nobody is stepping forward to fill it up.
2. The fact that Italian debt has become the focus.
3. Bad unemployment data out of Europe as a whole (up to 10.2% from 10%)
4. German retail sales down to 0.4% vs the expected 1.1% and down from last month's revised figure of 2.7%
Moreover, there were very strong technical indicators last Friday that this was due to happen. If you missed my Friday post, click here
From here I see the Euro is now testing the support turned resistance of 1.3950. If price manages to close at or below 1.3940 today, then I project retesting the 1.39 support and if it fails, I believe we shall see 1.3820 again. 1.3820 is major support so I do not have high hopes of this being broken unless we get some more negative news and/or a confirmation that QE3 is off the table this year.
Here is my Hourly chart...
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Those who say it cannot be done should not interrupt those who are doing it