European Concern (2010-12-16 EUR analysis)

There is growing concerns about Europe which casued a great slump in HSI. Well, it appears that it just always changes from "concern" to "relieved" and back to "concern", and the stock market just go down and up and down. Anyway, 27500 is an important support level for HSI. Watch out.

Regarding the European concerns, let's check the Euros.



Above is the 4-Hour chart of EUR. The 16-nation currency just broke the green uptrend line, and is moving towards the red down-trend line.

MACD is dropping, aligning with the bearish movement of the currency. There is still no sign of any reversal.

The red line will be the next support line. The level is around 1.313 until the price can finally get some support from further plunges.

It seems like the price would keep falling until the red support line due to the "concerns", but whether it will breakdown or not would depend on any news announced in the coming days.