EUR/USD Technical Analysis September 6, 2011

The EUR/USD pair fell again on Monday as traders reacted to the losses suffered in German elections by Merkel’s party. The party is paying the cost of continually pressing for the bailout of the rest of Europe. This brings up very serious questions as to whether the Germans will continue to back the bailouts. Granted, this last election was a minor one, but if this is a signal on the larger ones coming – Europe could be in serious trouble. While we like selling the Euro, it looks as if a bounce is in order as the 1.41 level seems to produce them for the time being against the USD, mainly because the US isn’t in great shape either. We expect a continuation of range bound conditions in this market for the time being. (1.40 – 1.45)

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