Monday, June 4, 2012

Eur/ USD

Eur/ USD posted a price-RSI divergence on the daily chart. I view this development as bullish for the currency in the Intermediate term. Further, there is a strong support below the 1.2286 till 1.18. Resistances to clear are 1.2494 and 1.2622. 

If Eur/ USD can post a rally for few days, that should calm the markets down and we could see an short term bottom on the equity markets as well. Take into consideration that Eur/USD has an inverse correlation with the equity markets usually.

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