EUR/USD Overnight Squeeze

The EURUSD is moving below back below the 200 bar MA at the 1.3589 level.   At around the same time, the 100 bar MA on the 5 minute chart was being broken at the 1.3586 level.  These two levels should now provide resistance for the EURUSD.

 

 

The price has moved down to test the 200 bar MA on the same 5 minute chart at the 1.3573 level. The importance of this level is the price held this moving average line earlier today and moved higher.  The market remembers this fact. As a result, we will need a break below to further pressure the pair.  The next target below that level, comes in at the 100 hour MA at the 1.3556 level (blue line in the hourly chart above). A break of that level will look toward the key 1.3531-39 level once again.

Although Greece continues to be a concern from a fundamental perspective. There is also some issues with AIG in the news today.  AIG reported a huge loss and are saying that they may need additional government assistance.   The question is does the double bad news lead to a flight to quality (into the $ and Yen) or does the AIG news cancel the Greece news and lead to a weaker dollar (i.e. correcting dollar).  Watch the technical levels at 1.3586/89 to give the clues to the upside.  On the downside, a break of the 1.3573 level (200 bar on the 5 minute chart) should  confirm further pressure.