y’day on concern over eurozone debt contagion, news of geopolitical tension in
the Korean peninsular prompted broad-based selling of euro, the selloff in
global bourses triggered a massive flight to safe-haven currencies (usd, yen &
chf), euro subsequently tumbled to 1.3361 in late NY trading n then falling
marginally to 1.3359 just ahead of Asian opening b4 staging a recovery.
Y’day’s breach of last week’s 1.3446 low (now res) confirms the decline
fm 1.4283 has once again resumed n as this move is seen as a retracement of the
MT rise fm 1.1876 (June), further weakness twd 1.3269 is envisaged, being 61.8%
proj. of the aforesaid fall fm 1.4283-1.3446 measured fm 1.3786, however, reckon
1.3235 (61.8% r of 1.2588-1.4283) wud hold fm here.
Today, selling euro on intra-day recovery is the way to go as only a firm
rise abv 1.3446 wud signal a temporary low is in place, however, as long as
1.3526 (y’day’s Asian low) holds, bearishness remains for euro to resume recent
decline to above mentioned downside targets.