Technical Perspective: EURO & EURGBP Cross

EURGBP DAILY 6.28

Update as of June 28: With the volatility of an uncertain market have pushed the Euro lower spilling over to the EURGBP cross establishing a low at our initial objective at 0.7983. This was also in line with the Euro holding at the 1.2440 technical support price from the charts. Traders reluctance to short at these levels were non-existence but likewise hesitant to buy until any real direction from the EU summit would provide a good signal. However, a pre-calculated risk of a short term trade based on our recent post of trading in the beginning of the trading session and creating a counter-trend ( price reversal) at the mid-week have proven to be effective with the appropriate timing. Price guides have to be established first as the recent short on the EURUSD earlier have been settled along with the GBPCHF cross on the correction. While securing a counter trend position with the EURGBP on the way up. Although, this is more speculative; but serves as a protective position for any gains from both earlier positions as mentioned in our June 25 marketview analysis. Daily extensions on the high on a session to session would be at the 0.8045/60 and on the low would be minimal risk price of 0.7950 dated May 16, 2012. However, price action would depend on the momentum and price behavior towards the end of the week's trading and news reports.

EURO DAILY 6.28

Update as of June 28: The EURUSD have stretched its limits more towards the 1.2440 low where it met some short-covering among speculative trades. High frequency trades were noticed among institutions taking every advantage of the price action. Although, seen limited to short trades as a counter-trend play is at work during the closing of the mid-week's trading. There will always be some corrective move but still can not be treated as reversal points. As the EURUSD have been squeezed with the recent daily move of the GBPUSD when it moved to the previous day's high at 1.5645 and covered back its gains yesterday with a move back lower from where it started at 1.5550/62.

Currently working at the 1.2510/15 levels as of this writing, the EURUSD awaits any fundamental reports this end of the week and month's trading for a clearer direction for Euro traders. Please take note that being able to trade alongside with secondary markets would not limit the trader to take full advantage of price volatility. Although, weighning risk / reward ration should always be pre-calculated with due diligence in identifying the next probable currency to trade.