To be, or not to be. That is the question for the #Euro $EURUSD $6E_F

Whin316l

1.3420 support has faired quite well, considered it has been tested several times during the last week. The level has been accepted, at least for now. Feels like it is waiting for something. It is important to note also, that there has been a very high positive corraltion between the Euro and the S&P500 futrures, lately.

The Euro open on Sunday night with tiny 5 pip a gap down, which was almost instantly filled following the first 20 min. of the session. This has not happened with the ES, which is currently almost -10 points, at the time of writing (11:40PM, ET). This is defintely saying something.

2011-11-21_0136

Levelwise, the chart below is showing the areas of interest. Aside from the 1.3420-1.3400 level, It is important to point out the 1.3250-1.3330 as a key level, where the previous upmove back in early June took place, followed by 1.3170-1.3220.

To the upside, if the barrier of 1.3650 is breached, I think the Euro could possibly see 1.3800-1.3850, even 1.3950-1.400. Compared to previous crisis (2009, for example), the Euro has faired fairly well, considering the crisis is only getting worse. This makes me think, as a possibility, the alternative of some in the market have been already pricing in some sort of future event. Just an idea.

2011-11-21_0149

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