Euro Trends Lower as Stock Market Weakens

The Euro is trending lower this afternoon in the New York session. This market is still having trouble closing over 1.3300.  The break inthe equity markets due to Chrysler declaring bankruptcy is taking thewind out of trader demand for more risky assets.

The Euro is trending lower this afternoon in the New York session.  This market is still having trouble closing over 1.3300.  The break in the equity markets due to Chrysler declaring bankruptcy is taking the wind out of trader demand for more risky assets. 

Traders are also expressing their concerns about the European Central Bank’s upcoming interest rate decision and quantitative easing announcement.

The EUR USD Hourly Chart has turned the main trend down.  The trend turned down on a trade through 1.3233.  Based on the short-term range of 1.3386 to 1.3191, there may be one more retracement to 1.3288 – 1.3311.  A failure in this zone sets up a secondary lower bottom and indicates more downside to come.

The range this week is 1.2964 to 1.3386.  The first potential support area is 1.3175 to 1.3125.  Watch for technical bounces inside of this zone until the market can build up enough momentum to break through it.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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