Will the EURO move lower,does the market believe Cyprus is still a risk for the whole Eurozone (21/3/2013)

Read about the Trend/Wave/Extreme system here.

The Euro is continuing its drop today as it was forecasted yesterday. The Trend/Wave/Extreme indicators above are telling the story. Nearly every long term (Trend) and short term (Wave) indicator are pointing that the Euro is going down against all currencies.

As the Euro is now in oversold region against many of its counter currencies it may be a bit too late now to sell it.   Officials in Cyprus are currently working for a bailout solution that involves saving one of the two major banks and no haircuts on deposits under 100k that may have a positive impact.

On the other hand a question is being raised that Cyprus does not pose systemic risk in the whole Eurozone that could affect other members and any further news from Cyprus could have any impact on the Euro. This argument is being backed up the fact that the Euro rose yesterday despite Cyprus.


Yesterday we suggested selling the EURUSUD. The trade has been successful so far as the pair has dropped.

The pair has been founding support around 1.2900 today as it was ranging between 1.2880-1.2920 all day. This is a major psychological level.

There is an additional major support at 1.2850. A break below this level could really see the pair go down. Therefore if you are planning to sell it keep an eye in these levels.

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.