Good day traders!
Ahhh.. So the Irish banks got a bailout after all. There was a lot of drama before the bailout with the Irish pretending that they didn’t need any help from anyone and that they can survive without any help from anyone. But what we know now is that they actually welcomed that extra help and they have gotten it. So what now?
What will happen to our dear euro dollar? Looking at the chart above, it seems that the correction from the top near the 1.42 region may have ended at the 50% fib level taken from the low of 1.2587 to the top at 1.4288.
In fact the 38.2% fib level have also acted as support at the moment. Are we going to see the euro dollar head higher from the current price level at 1.378? In my opinion, we have to see how the support level at 1.3628 hold? If the price heads lower and that level breaks, I think we will see a break down lower to the 1.32 levels. If price manage to break and hold above 1.3887, we might have a chance that euro might head higher till the end of the year.
Also, being a believe that stock markets also holds much weight in how the currency market moves, I will post the Dow’s chart in my next post. Stay tuned!
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