Stocks and Dollars

On Thursday Pound/Dollar continued decreasing significantly with 155 pips. The Cable depreciated from 1.5934 to 1.5779 yesterday, in line with the negative money flow sentiment at under -23%, closing the day at 1.5793. Today the British Pound weakened further, descending down to 1.5731, than commenced correcting.

‘The market’s very concerned about contagion and Spain probably being the biggest focus of attention after Greece. If the euro breaks $1.26, there’s probably not a lot of stops going to the lows that we saw in 2010′ – Rochford Capital (based on Bloomberg)

Moving to the daily graph, the pair has ignored the oversold readings appearing on Stochastic resuming the bearishness. Now, the pair becomes very close to 100% Fibonacci retracement of the upside rally from 1.2625 to 1.3485 and a break of which will bring panic sell-off actions over intraday basis. Ultimately,

The pair declined sharply yesterday to complete the formation of the double top shown above, especially after the breach of the neckline at 127.10. The pair is stable below the retest level of 125.65, providing more bearish signs that support the continuity of the downside movement today Our main

The European Central Bank will temporarily stop lending to some Greek banks to limit its risk. The President of the European Central Bank, Mario Draghi signaled the ECB won key principles to keep Greece in the euro area. National benchmark indexes declined in all 10 western European markets open today.

On Thursday Euro/Dollar traded slightly down and within 85 pip range. The European currency depreciated from 1.2750 to 1.2665 yesterday, matching the negative money flow sentiment at bellow -8%, closing the day at 1.2696. This morning the Euro is trading quietly, with movements at the lower end of yesterday’s range for now.

EURUSD: The EUR/USD is currently trading at 1.2680 levels. Euro hit its 4 month low against the dollar and extended the declines to a third straight week amid the ongoing Greece crisis which further worsened after the Fitch rating downgraded the Greece’s long term credit rating, signaling the risk

Short-term downtrend off 1.3282, 01 May peak, remains unobstructed, with few minor consolidations and acceleration of losses after break below 1.3000 range floor. Series of negative news form the Eurozone keep the pair under pressure and are the main driver. Break below psychological supports at 1.2800 and 1.2700, as well