EUR is sliding slowly since yesterday's top @ 1.4516 and this morning we have touched the strong support level @ 1.4380. I've adviced you yesterday to enter LONG somewhere between 1.4360 and 1.4390 and this is still valid. EUR is now struggling with the 38.2% level @ 1.4410 add to longs above 1.4460 for 1.4530. Remember that drops to 1.4330 are still possible as we are forming something strange like consolidation in wide range with possible going UP. The big movements will start next month as most of the traders are now in summer vacation. If we close above 1.4520 this will take us quickly to 1.4680 where EUR will loose all of its power and a huge drop will follow. For today 1.4320-30 will hold, better stop below.
European leaders again focus the traders' attention to the bad data from overseas, how the US economy is slowing down and how S&P lowered the raiting and how high unemployment is, and how low is the interestrate which will not rise until 2013. But noone asks what is the EU situation - what about debt crisis - what about Greece, Italy, Portugal, Spain??? What about almost 0% growth in Germany??? Too many problems and nothing still solved and the worse is that noone does anything to solve the problems, just distracting traders with what is in USA. We know what is there - Mrs.Merkel and Mr.Sarkozy - tell us what's here??? What will you do with the ECB rate as the Europe is at the edge of recession???
When there is an answer to just one of these EUR will suffer a tremendous fall below 1.36, but till then a major panic will continue with EUR forecasts going to 1.50 and above. One thing is sure GOLD will go up and up, buy GOLD and let others die :)