Euro recedes to 40 pips range amid low volatility. The euro has seen a bearish week as it emerge from last Friday’s stalemate with London. With investors looking for safe haven in other currencies like the dollar and sterling, most traders could say they saw it coming. As the euro has fallen into the range market, could this be a sign of a selling cool-off?
Euro Recedes Into Morning Range
The day began with a short selling in the morning trade in London. But risks aversion in the dollar and sterling meant that selling the euro is no longer a viable option for now.
Euro dollar began with the pair falling slightly lower to 1.3003. This has in turn kept the euro, EURUSD just a tick above the benchmark level of 1.3000 and little bit below the pivot at 1.3006.
From the chart on the right, the euro, EURUSD have ranged within 1.3003 and 1.3043 all morning with 40 pips range and thus keeping all good intention traders like us out.
How Long Can Euro Hold at This Level?
Having breached the 1.3000 twice this week, the question now is how long can this level hold?
Weeks have passed since EU Leaders were said have been dealing with it. The problem is none of them are really willing to examine their economic structure. They are blaming one another home and away rather than doing something about their sovereign debt.
Take for example Portugal and Ireland. They changed leaders because felt their leaders were not doing enough. What they sniped at their previous leaders for was what they ended up doing.
While EU Leaders expect market to correct itself and feeling indifferent about the truth is, this problem won’t go away while market sentiment remain the same. According to one market expert, “.. the Euro debt crisis is driving investors away from the region..”. This could only mean one thing – euro erosion.
Today, the Euro recedes to 40 pips range of safety and the day is still quite young. What happens when Italian bond goes on sales?
