FindUsInSpain News: Euro Market Update 23 June 2009

We adopted a positive tone in last week's report because Sterling had bravely pushed through key technical resistance at 1.1575. Things did improve further, reaching a new high close to 1.1900 yesterday before things took a turn for the worse after a negative house prices report added to last week's surprisingly soft retail sales data to give an impression that the recovery may be a little way off yet. A bad day for the stock markets also saw investor fear levels spike higher, giving the dollar a boost and dragging Sterling lower relative to the Euro.

The market is dipping back toward the key 1.1575 support level. We bounced well ahead of this last week with a low of 1.1625. In the context of the recent uptrend this correction appears to be just that....a correction! We would only become really concerned for the uptrend if we fell through the June low at 1.1280. However, as always it's worth taking some risk off the table now if you have Euro exposure. Buying half here while we are still trading close to six month highs looks like a sensible strategy.

Euro Market Update 23 June 2009

Tuesday, June 23 2009 @ 04:05 PM UTC