EU Van Rompuy is on the newswires saying he fully supports the measures of the Greek government. HOwever, he reminded the market that the Greek government will need to act decisively and that they should cut the budget deficit/GDP by 4% in 2010. This will slow growth in the country and the EU in general. It will also come with some opposition from the Greek population.
So the EURUSD has fallen to a new low on the day at the 1.3707 level. This is below the 100 hour MA currently at the 1.3716 and the Midpoint (1.3712) of the range from Friday’s low at 1.3585 and the high reached on Tuesday at 1.3839. The price has rebounded back above the 1.3716 level but the market is definitely at a crossroad for the pair as the price decides which way it wants to break - is it ready to break? Overnight the price tested the other end of the Goal Post formation as defined by the 100 and 200 hour MA on the chart above. The price apart from a hourly period yesterday has been contained with in the two moving averages for 2 days now.
A break to the downside, should next target the 1.3682 level.The low for the week is actually a double low on Monday at 1.3621. The low for 2010 was last Friday at 1.3585.
On the topside, if the market price can hold the market will be looking for a break above the 200 and 100 bar MA on the 5 minute chart which comes in at 1.3760 to 1.3765 currently.
Today we do have the US Initial Claims data at 8:30 AM. The expectation is for a fall to 465K from 480K. A weaker number may be needed to push the price through. However, weak or strong, the level should be a key level today. Be aware.
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