The EURUSD depreciated strongly yesterday , topped at 1.2669 , bottomed at 1.2448 and closed at 1.2477...

Today I assume .....It's hard to say , there's lot of conflicts and unclear clouds about this pair...  

I'd like to start with Spain bailout the 100 billion EURO...we have 2 facts about  this issue:

1- Spain said that It needs 100 Billion EURO for saving the banking system in the country  ; If this true, It would mean that the banking system is collapsing and massive withdrawal is expected - from depositors- in the nearest time !! 

2- The 100 Billion is only a rumor nothing more than that to show the world EURO zone is OK we have money we are able to solve any problem !!!

In both cases massive fall is expected to the pair ...

Anyway, you may ask a question ?!! who would pay such amount of money to Spain  ?!!

The answer is simple : It's United States...!!!!!

Technically , strong bearish momentum is building right now on the daily chart but  a breach below yesterday's low -1.2448 - is indeed to resume the down trend testing 1.2287 followed by 1.20000 levels..

But in return , stability above 1.2448 may push the pair up strongly towards 1.2750 levels...

By checking intraday time frames , the pair is moving sideways , so either way move is suggested but I think 1.2448 is unbreakable today !!!!

For the upside, a clear break above 1.2535 would test 1.2585 , breaking above the last one would increase the risk toward 1.2680 levels...

Recommendations: Buying the pair around 1.2485 , targeting 1.2535, 1.2585 and 1.2680 , stop loss 1.2440...OR selling the pair at 1.2440 targeting 1.2330 and 1.2230 , stop loss 1.2590....

Best Regards

Tuesday 12 June 2012 06:45 AM