Monday, January 14, 2013

Bearish on the EUR/USD this week

The chart above says it all... well maybe not really and needs some explaining. Monday opening day; US Markets kicking in after European markets end mixed. VIX relatively quite, sell your dollars - risk appetite increase? Maybe. But I'm known as the Euro bear. I'm usually very bearish on the EUR/USD and only seldomly (yes seldomly) buy into the EUR/USD. Reason? An overinflated Euro number one, second; I find myself trading more and more technically. News is nice, but it creates a tremendous amount of noise and more than often provides you information not even relevant to your trade. The whole week, yes, I'm going to be a Euro bear, 1.34 price point is only adding fuel to the fire of the ailing European economy and the last thing Europe wants is to make exports even more expensive
From a technical stand point, after the 1.34 'ceiling test', I'm going with the trend from here on out. I'm targeting 1.32 / 1.3225 by the end of the week.
Yes, we'll see who was right Friday.

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