EUR/USD Fx commentary February 7, 2012
The Euro yesterday was plagued with rumors about rumors on the Greek fiasco. First the politicians are blowing past the deadline. Then they say there was no deadline LOL. They are holding steadfast on not implementing wage and bonus reforms. Then they are giving in. What strikes me as funny is I expected when I got up this morning there would be a big news flash of “We have a deal!!” Yet there was nothing. I keep on reading how tired people are of hearing about Greece and to be honest so am I. The problem is until something actually gives way it will be the top story concerning the Euro. Sad but true.
What is even funnier is even tho I expect the default scenario it does make much more sense that they get the deal finished so the can will get kicked a bit further down the road and this is what the market is looking to see. Just looking at the daily chart and the range that has been holding for 7 days now shows just how confused and uncertain of the outcome of this fiasco is. The market drops through Asia and London only to be snatched back and end close to flat. The last 3 days of indecision candles shows this well. At this point I expect more of the same until we get some sort of solid news on the situation and then watch out. As I sad before what makes the most sense is the deal gets done but then again when do the governments, politicians, or markets for that matter make all that much sense? LOL
At this point I will be looking at how price reacts to the daily levels and look for shorts at the top or longs at the bottom depending on how price reacts at those levels.
Be ready for the surprise any day now guys and trade safe.