EUR/USD Falls Under 1.3600

The Euro has reversed most of Friday’s and Sunday’s gains as concerns continue to linger on deficits. Fitch today warned that Spain and France need to take stronger measures and that a sovereign default is possible in EMU, although it predicts that it would not cause a split.

Investors are also wary of the next few steps of the EMU as talk of establishing an IMF-style institution have emerged. Comments regarding the idea have been mixed with some politicians seeing it as a good idea, while others as a way to induce fiscal irresponsibility.

Greek Prime Minister George Papandreou and U.S. President Barack Obama and Treasury Secretary Timothy Geithner will meet today to discuss issues surrounding Greece and ways to crackdown on speculators.

EUR/USD remains confined in a consolidation range with downside bias still expected. The EMU needs to find a way to deal with this types of issues in the future.

Trend:

Weekly : Sideways
Daily: Sideways
Hourly: Sideways

Support & Resistance:

From current levels, 1.3571, the pair finds initial resistance at 1.3635, followed by 1.3704, 13750 and 1.3805.

Key support to watch is the 1.3560 where a break of such would open targets to the 1.3530 level, followed by 1.3486, and 1.3445.

Strategy:

Stand aside for now. Shifts in risk sentiment continue to drive the pair.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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