• 458 days Will The ECB Continue To Hike Rates?
  • 458 days Forbes: Aramco Remains Largest Company In The Middle East
  • 460 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 859 days Could Crypto Overtake Traditional Investment?
  • 864 days Americans Still Quitting Jobs At Record Pace
  • 866 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 869 days Is The Dollar Too Strong?
  • 870 days Big Tech Disappoints Investors on Earnings Calls
  • 870 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 872 days China Is Quietly Trying To Distance Itself From Russia
  • 872 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 876 days Crypto Investors Won Big In 2021
  • 877 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 877 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 880 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 880 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 883 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 884 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 884 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 886 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Euro Posts Reversal Top after Irish Bank Downgrade

The EUR USD posted a closing price reversal top on Monday after Moody's Investors Service said it cut Anglo Irish Bank's unguaranteed senior debt to Baa3 from A3, and cut its dated subordinated debt to Caa1 from Ba1.

The chart pattern suggests a possible top, but the pace of the break from the top may be hindered by lingering concerns that the U.S. Federal Reserve will engage in quantitative easing.

Technically, I had been anticipating a possible top or at the least a technical bounce once the Euro reached the 50% price level of the main 1.1876 to 1.5144 range at 1.3510. The current rally reached 1.3507 before sellers stepped in.

If confirmed by at break through 1.3424, the Euro may begin a correction back to 50% of the 1.2644 to 1.3507 range. This price is 1.3075.

The technical pattern is clear, but in order for this to come to fruition, it needs the cooperation of a couple of fundamental factors. Sovereign debt concerns are likely to be a bearish driving force, but this news could be negated by bullish economic news from the Euro Zone or more bearish economic news from the U.S.

 

Back to homepage

Leave a comment

Leave a comment