Forex Day Trading Commentary EUR/USD December 12, 2011
I was obviously wrong about any optimism concerning the EZ summit. It seems just as the US market didnt buy into the BS neither did Asia or London/Europe for that matter. There were a couple of tape bombs as we call them that were released yesterday also that I am rather sure contributed to the drop. Although there was no announcement of downgrades by S&P, Moodys did release a statement saying they were concerned about Europe going into recession and that would be credit negative. More or less letting them know they are watching without making it official.
There was also a disturbing release from the president of the German Federal parliament saying that they doubted the measures adopted last week at the summit to strengthen integration in the EZ would be considered legal by the German Constitutional Court. If this is a fact it would mean the summit may have well not even happened and does show that they are actually very far from deciding on what to do as well as even further from implementing any of it. There was definitely progress made at the summit and a lot of people were happy with the results. However time is running out and I dont think Mr Market has any more patients.
The euro sits on a substantial support area as I type this. A daily low back from Oct 4th at the 1.3170 level. A clear break here and we should see the 1.3000 level shortly. I will be looking to see if this does break during Asia today, showing Asia has conviction on the move then a retest during London to add to our short from the London session on the 12th. For any of the members who are still short. I have moved my stop to lock in 120 pips at 1.3198 and still have the TP open for now.
Take care and be careful out there