The Euro and the Greek Debt Crisis: Is THAT Really What's Driving the Trend?
“The euro…weakened against the dollar on Wednesday on uncertainty over Greece's debt crisis,” said a May 25 Reuters story.
The Greek debt crisis is an easy scapegoat for the euro’s recent troubles. But what about days like May 24, when the euro gained despite the Greek situation? Well, you could say it was due to an “improved overall risk appetite,” like a May 24 MarketWatch story did.
Yet here’s the problem: You may feel satisfied with these explanations, but they only tell you why the markets did what they did after the fact. They give you no real clue about where the euro will go: It may rise due to “improved risk appetite,” or it may fall due to “continued concerns over European debt crisis.”
This is where Elliott wave analysis can give you an edge. Rather than relying on “fundamental” explanations (“rationalizations” is a more accurate term), Elliott shows you market psychology, which manifests itself in Elliott wave patterns across forex charts.
Elliott wave analysis helped our intensive Currency Specialty Service (hurry, Forex FreeWeek ends May 26 -- Ed.) to make this bearish EUR/USD forecast on May 24 -- a day before the May 25 slide took the euro lower.
Update For: Wednesday
Posted On: Tue, 24 May 2011 20:47:43 GMT
Last Price: 1.4100
Support: 1.3969, 1.3863, 1.3655, 1.3428
Resistance: 1.4137, 1.4346, 1.4424, 1.4944
[Lower] The euro recovered Tuesday but the rise from 1.3969 looks corrective... leaving the euro vulnerable.
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