EUR/USD found a bid on Tuesday again, and stopped at the 1.44 area. This pair looks like it wants to rise higher, but with the Greeks voting on austerity today, there are simply far too many headline risks out there to get involved. This pair could rise, but one must think that a lot of the good news about a bailout would have been priced into the market already.
So what does this leave? We could see a “sell the news” type of move in the market. We could also see an initial surge higher, but the 1.45 area looks very resistive, and one would have to wonder if the market could get through there. We could see the Greeks vote against austerity, and the Euro will meltdown. None of these get us excited about buying. While we believe the EUR/USD very well could fall, selling it at this point is only gambling.
Add to all of this the fact that people are starting to ask question s about Italy again, this could be the top. We just don’t have clarity yet…
Written by ForexMansion.com