• 13 hours Smart Investors Are Betting On This COVID-Proof Industry
  • 13 hours Disney’s Digital Pivot Could Be Its Saving Grace
  • 18 hours What Does Tesla's Million-Mile Battery Mean For Green Energy?
  • 20 hours U.S.-China Tensions Are Reaching A Boiling Point
  • 22 hours Gold Remains Strong Amid Increasing Economic Uncertainty
  • 2 days Morgan Stanley And Goldman Sachs Are Betting Big On This Budding Industry
  • 2 days Global Corporate Debt Soars To $9 Trillion
  • 2 days The Fed’s Slippery Slope
  • 2 days Precious Metals Pulled Ahead Of The Pack In The First Half Of 2020
  • 2 days Tesla Faces $20 Billion In Short Interest
  • 2 days China's Economic Recovery Remains Tepid
  • 2 days Silver Inches Closer To $20
  • 2 days The Secret Life Of Lithium
  • 3 days The Pandemic Proof $53 Billion Industry Wall Street Can’t Ignore
  • 3 days Will Gold Hit $2,000?
  • 3 days Trump’s Proposed Regulation Could Slow The ESG Boom
  • 4 days India To Auction 41 Coal Assets
  • 4 days Eldorado Sees Gold Production Soar In Second Quarte
  • 5 days Do Gold Stocks Still Have Upside Potential?
  • 6 days The S&P 500’s Top Companies Hold $2.5 Trillion In Debt
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  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