Tuesday, November 30, 2010
Not yet bottomed (2010-11-30 EUR analysis)
Concerns on PIIGS did not stop after situation in Ireland improved. Investors switched their awareness on Portugal and Spain, and EU could hardly aid them anymore if they had problems on their financial status, especially Spain. This would of course give a hard push to Euro to a even lower levels.
The price of the 16-nation currency keeps on moving lower along the green downwards channel. Touching the bottom line, it is currently rebouncing. However, given such bad news on situations in PIIGS, I could hardly expect that it has already bottomed.
Using fibonacci projection, it is heading towards its last low, and would probably reach around 1.30. However, MACD and EMA are at its lowest level, a small rebouncing and consolidation is likely, but it could hardly break the channel. So when it reaches somewhere around the second or third line, we could sell Euros and anticipate its continued drop.
張貼者:
Jeffrey Sha
於
7:10 AM
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