Tuesday, May 29, 2012
Headlines coming out of Europe are continuing to drive the market as news about the recapitalization of Bankia, the 4th largest bank in Spain, briefly restored confidence to investors and we began to see the Euro strengthen on hopes of a Spanish bailout. A couple of months ago, analysts were saying that Spain was too big to bail, since it is the 4th largest economy in the Eurozone. But, right now, it appears that a bailout package could still be manageable, despite the continual losses from bad real estate investments, magnified by massive unemployment and the effects of recession. However, despite the agreement to recapitalize their banks with 19 billion euro, we are still seeing capital withdrawn from Spanish Banks at record levels on fears that a Lehman-like crisis is on the verge of unfolding for the sovereign. The likelihood of a Greece exit from the Eurozone is highlighting the prospect of Spain's inability to handle bank losses, in the case of contagion. This uncertainty has caused stocks to tumble and the EUR/USD is now trading flat for the day.
In today's V.I.P. webinar, we discussed the current price behavior in the EUR/USD pair and looked for opportunities to place a live trade using the Slumdog Forex trading system.
Monday, May 28, 2012
Although US markets were closed for today & we had lower than usual volume, the EUR/USD pair still managed to move within a 100 pip range due exclusively to changing headlines coming out of Europe about the recapitalization of the Spanish bank, Bankia, and the latest survey polls for the upcoming Greek election on June 17th.
In today's technical analysis video, we will briefly explain the price action in the EUR/USD pair and identify common areas of support & resistance for potential trade entries.