The pick of the day is EUR/USD as the pair just reached a channel resistance level on the 6-hour dance floor at 1.36491, with the RSI also touching the oversold zone for short-term traders.
On the Daily dance floor, as I predicted last week the pair held at the 61% Fibonnacci level and now reaching the 38% level. Daily resistance levels could be seen at Fibonacci levels’ at 1.36632, 1.37502 or at the hard-core resistance level the pair has been having so much difficulty piercing through, at 1.38137.
The rise of the euro didn’t please the French Industry minister, who said over the weekend that such a strong exchange rate is hurting French business. I would argue with this to a certain degree and suggest that poor policies and lack of reform are the bigger problem. On Wednesday European Central Bank’s Mario Draghi will speak on Progress through Crisis. He may not be able to buy Spanish and Italian debt, and this has poured cold water on the possibility that the ECB could intervene again to help out sovereign bond markets.
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