The EUR/USD pair fell drastically during the session on Monday after initially trying to drive higher. Once the details of the Cypriot bailout hit the wires, people became very concerned as senior bondholders took a hit in the field. This had people concerned about other European banks in peripheral countries that seem to be in similar situations, and as a result we saw the Euro tank. We stopped at roughly 1.2850, which of course is a very supportive level. The real question is now whether or not we can break down. We believe that this move is probably going to continue, but we are going to sell rallies as it will give us more of an opportunity to pick up momentum to the downside.
Written by FX Empire