EURO is getting resistance below 1.34. last week I was expecting that it may test lower levels in middle to later part of the week, though it tested that but things were different in the last day due to finance minister’s meeting and Spain’s budget news.
If EURO continues its last day move then it may test 1.35 level and as I said in past that if it crosses that then it may trigger a pattern which can take it towards 1.42. I will think about its upside when EURO crosses 1.36, investors who took short positions may think about covering their positions if Euro goes level above 1.36.
In spite of all these I am little disappoint with EURO’s move in last few days, in fact in the last day it could be much better. So that reflects that things may be already discounted in the price, therefore EURO may test lower levels on any contrary news. I will be watching 1.30 level very closely, if it breaks that then there is a chance that it may test 1.25 level. Therefore its long-term pattern which says that EURO will be around 1.15 may become true.
[EURO is given against US dollar unless, specifically told.]