EUR/USD fell again during the Wednesday session as the risk appetite was fleeting from the Tuesday rallies in equity markets around the world. The pair continues to be plagued by EU debt problems, and the market finally coming to an understanding that the European issues are going to be a process, and not some quick fix.
The 1.30 to 1.29 level continues to be very supportive, and as a result we want to wait until we get a daily close below the 1.29 level in order to sell this pair hand over fist. In the mean time, we continue to sell rallies just like we did in the early hours of Wednesday. The pair should continue to drift lower, but expect small rallies of “hope” in the interim.
Written by FX Empire