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Posts Tagged ‘Germany’

The Euro Breaks Long-Term Support: Watch Out for Short Covering

May 16, 2010 1 comment

The Euro just broke four year lows over continuing fear over the Greece Sovereign debt crises and the related risks of contagion to Portugal, Spain, Ireland and the rest of the Euro zone.

While the situation is certainly bleak, a large majority of traders are currently short the Euro and you don’t want to sell lows. You can see from the chart below that we just hit a medium term short target and although its definitely possible that we could just keep going in an extension, it’s also very possible that we could see a near-term retracement to 1.26’s as shorts take profit in a crowded trade.

-MJB

(Click to Enlarge)

Chart View of the Germany and Greece Debt Bailout Rumor

February 9, 2010 Leave a comment

Pretty funny chart courtesy of ZeroHedge showing today’s price action on the ‘news’ of a rumor that Germany was going to bail Greece out of their sovereign debt problems.

The interesting thing to note here is that it would appear the market is still pricing in a decent probability of some form of assistance coming in, possibly from another country.

-MJB