EUR/USD Technical Analysis September 7, 2011

The EUR/USD pair shot straight up in the early hours of Tuesday in response to the massive 1,000 pip move in the EUR/CHF pair, but quickly faded from that move to an absolute freefall later in the day. The pair is currently sitting right at the 1.40 level, and this is a massive support level. However, the German courts are hearing a case involving whether or not the Greek bailouts are legal in their eyes today. Depending on that ruling, we could see the Euro permanently damaged if the case goes poorly. Because of this, the EUR/USD is a pair we want nothing to do with in the mean time. After the court ruling, the reaction shall tell us which direction to trade in.

Written by FX Empire