Friday, May 20, 2011

EUR/USD 1,4167

The hegemonic currency faced another sell-off round after Fitch rating agency downgraded Greece from BB+ to B+ and after Norway suspended a EUR 25 million grant to Greece as this latter did not fulfill commitments and may have broken rules. The Norway's Foreign Ministry also said in a statement that Greece has to explain how the funds have been spent.

High volatility amid low volume persists in the FX market this Friday while commodities and stocks are reversing early losses.

EUR/USD sank below 1.4200 and hit the lowest price in 3 days at 1.4138 on the news, although it found strong support and has managed to trim part of today's losses. EUR/USD has recovered around 50 pips within the last hours and currently is testing the 1.4190/1.4205 area, former support, now resistance.

If the cross manages to break above, stops around 1.4210 could be trigger, exposing next resistance at the 1.4250 zone, while on the downside, below 1.4140, 1.4120/25 and 1.4050 are further support.



  1. Its coming to an end my friend!

  2. Eh.... we need some recovery.

  3. Wow! I take a little time off and the market starts tanking? That is one heck of a drop!