EUR/USD fell hard on Monday as traders worried about the possibility of Moody’s downgrading the EU countries on top of the S&P threat. This will continue to weigh on the ability to own the Euro. The pair has made another run at the September bottom, and if that area gives way – this pair could fall much further. However, the 1.31 to 1.30 area is a massively supportive area and could cause problems for bears. The breaking of the 1.30 level would be massively bearish and get us massively short of this pair. At this point though – we like the idea of selling rallies going forward, and of course that break below 1.30 or so.
Written by FX Empire