By: DailyForex.com
The EUR/USD pair fell during the session on Tuesday as the "risk off" trade came back into play. The pair got a little bit of pressure put upon it because of riots in Spain, and of course concerns about the Greeks covering of their deficits again. In a movie that seems to be playing over and over, the European debt crisis is the gift that keeps on giving.
Currently, we are below the 1.30 level and it looks like the area is going to be a bit of a stretch for the Euro to continue above. We do however feel that the 1.2750 level below should be relatively supportive. Because of this, we are not necessarily ready to start shorting the Euro, although we do feel that eventually this pair goes much lower. We need to clear the 1.2750 level before we get overly bearish and aim for the 1.25 level.
Of course, the 1.2 5 Level Giving Way would be massively bearish and send this pair down drastically. I don't feel that we're going to do that quite yet, but a pullback would be more than expected at this point time as the area between 1.30 and 1.33 is so riddled with noise.
Still messy, still not interested
This pair still looks very messy to me, and of course I'm still not interested. I know that many people will only trade this pair, which of course is something that I have never understood. I know that some brokers have spreads in this particular pair of less than two pips, but the truth is that sometimes market simply are far too messy to risk your trading capital with. This is essentially how I feel about this pair right now. There are much easier trades out there, and as such I feel that I am not missing much by being out of this market right now.
.jpg "EURUSD Daily")
In fact, I feel the Euro against the Yen is a much more interesting market. If you have to play the Euro at the moment, keep in mind that over there the pair is hovering over the 100 handle, and this is of course a major area. In this particular market, all I see is messiness at this point time and severe headline risk.