Watch out! (2010-05-13 EUR analysis)

After my blog talking about AUD yesterday, it surged due to the expectation of raising interest rates after the increase in job growth. We can see that Aussie broke beautifully on the 4-hour chart. Being more likely to be supported by the fibs at around 0.8984, the next resistant would be at around 0.9076, which is the previous high. The following trend would depend on whether the government would like to keep the interest rate or not.



While AUD keeps moving upwards, EUR is testing the bottom again. The graph below shows clearly that EUR was supported by the two channels as well as the fibs at around 1.2576. It would be more likely to drop and break the fibs and test the previous bottom.



Nevertheless, as long as the financial problems in PIIGS are not eased, we could expect a bearish trend in EURO. I believe John Paulson has gained big money from his short positions in EURO again.