EUR

After reaching a session high of 1.2671, the highest level since May 13th, the EUR/USD pair has traded continually lower and has been testing the 200 hr moving average at 1.2472. The last two hourly candlesticks tested the line but could not break through; a close below may have been a bearish signal for the pair in which case the next downside target would be the 61.8% line on the move from the low of May 20 to todays high, at 1.2439. The next topside target is currently the 38.2% line at 1.2528 and further is the 23.6% retracement at 1.2582.

Pair is now trading above 12530 head for 12580 in my view as Europe's rescue plan has been met by an approval

The move below 1.25 in EUR/USD was short-lived and we are now trading back around 1.2540. The doom and gloom merchants were out in force in the UK press this morning but we have heard it all before. The European session has been a quiet one so far in stark contrast to the Asian session where liquidity is a huge problem.
Asian regional central banks were intervening all day in order to protect their local currencies. Talk of around half a yard each at the central banks of Taiwan, Philippines and Indonesia. Whilst S. Korea had a holiday it did not stop KRW NDFs trading another 2% higher. Asia has got the jitters big time. Another 4% drop on Wall Street may send them over the edge.

In other news

FRANKFURT (MNI) The German federal government will top up its
Feb2011 maturity bubill by E2 billion, the Bundesbank confirmed Friday.
The formal tender offer will be made on Friday, May 28. Bids are
due by 0900 GMT on Monday, May 31, with results of the allocation to be
announced shortly thereafter.
The bubills will settle on Wednesday, June 2, 2010 and mature on
February 23, 2011.



@LUCKY

I can suggest another sell from 1186 with a stoploss of 1206 see if it fares well for you

Eurozone recorded a seasonally adjusted current account surplus of EUR 1.7 billion in March compared to the revised EUR 4.5 billion deficit in February, the European Central Bank said on Friday.

The unadjusted current account balance also turned to a surplus of EUR 1.3 billion, compared to the EUR 6.2 billion deficit a month ago.

The swing in the balance sheet came due to a higher surplus in the goods account and a sharply narrower deficit in the current transfers account.

Meanwhile, the unadjusted financial account recorded a surplus of EUR 0.9 billion in March, down from the EUR 4.5 billion surplus in the prior month.

@INGBalek I would suggest, considering the fundamental as they are as of today you know only imagine where the European bonds will be headed next week onto next month till the next release. Its over mate adjust your positions for longs aswell.


@ASHRAF "UK as the April Public Sector Borrowing Requirement surged to a new record of 8.8bln, M3 (money supply) was flat for the month and mortgage approvals fell to 47K, highlighting continued govt borrowing and weak bank lending." I ask, Would this not open doors for further QE? and if QE is brought in what effects do you see on GBP back of those measures. QE to me seem coming sooner than later. What do you think?

i said three days ago that these people want us to pay for the euro zone bail out now euro will go up suddenly go down its very volatile please be care full do not rely on euro trend its unpredictable guys its like blade just wounding every body and these whats happening up till now

Well in pseudo-technical mode, on the 1H chart, I happen to notice that:

-Thurs 0700 BST, bounced from below off 150 EMA
-Thurs 1800 punched right through 150 EMA, hesitating at 200 EMA
-Thurs 1900 shot above 200 EMA, not quite reaching 1.26
-Thurs 22-2300 sank below 150 EMA, but then bounced up until
-Friday 0500 when it bounced off the 365 EMA, coming down to the 200 EMA, where it is again hesitating
(~1.2500). It has been below the 150 EMA for most of the recent downtrend, but is currently above it.

Will it come down below it again? (would be about 1.2450 as I write - 09:30 BST)