A more technical look at the markets from InterTrader
As the risk-on sentiment continues, EUR/USD managed to rally through the $1.28 level this morning.
With speculation running rampant in the lead up to the Eurozone decision on Greek debt, the French downgrade did not deter the bulls from pushing the forex pair higher.
Indeed, it looks like the EUR/USD market could go further up intraday.
With the pair currently around $1.28, the bulls are likely to meet some resistance.
However, once the $1.2825 resistance level is cleared this would open the door for $1.2875 intraday.
We should not forget though, all-in-all, we are in a bearish market.
If we compare the gains the Dow Jones posted yesterday to the lack of an explosion of the euro against the greenback this should warn us that we have more risk to the downside than the upside.
This could therefore make today’s potential rally a good selling opportunity on a longer term basis.
For a live chart, see EUR/USD chart.
Looking at the Eco stats, it’s another quite day on the European economic data front, so that keeps the focus on the US Housing Starts and the US Redbook.
Good luck
Dafni Sedari
(Original article written 20 November 2012).
Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.