Eur/Usd came sharply lower

Wed, Sep 8 2010, 05:59 GMT
by Carol Harmer


EUR/USD

EURUSD

Eur/Usd came sharply lower and once through 1.2780 sellers kept up the pressure and we came lower to 1.2678. We have see a small recovery overnight, but nothing really significant and unless we can break back 1.2780 we are going to see downward pressure resume with 1.2626/24 targeted in the short term.

Here sellers may well be advised to cover shorts. You are going to find support at these lower levels and given that we have seen quite a decline since the beginning of August this may well be enough to hold the downside. However if below 1.2600 all bets are off and we are going to come quite a bit lower from here.

If we can edge back above 1.2780 there is scope for a recovery, but again 1.2920 looks to be the top and we should sell here looking for a resumption of the downward moves.