Another lousy day for the Euro currency, the close of 1.2366 was very decisive, and its just a matter of days before the next target of 1.20/19 is hit.
So, the Euro/Dollar will soon be down to 1.20/19. The issue is can it hold that level? If we break into the 1.18s, I'd assume there is a chance of a fast and dirty move to around 1.15/13. There is of course talk of 'parity'. The majority view is that will happen...but not until at least 2013. I suppose if the Greeks fail to form a government on their second election attempt, then parity may even come this summer - which would probably equate to sp'1100..if not sub'1000. Yet neither the Bernanke, nor the EU would be content to tolerate that sort of move this summer.
The bears should watch the Euro closely, if we get stuck/floor in the 1.20 zone, - and if Sp'1280...that would probably be a good area to close all short positions.
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Goodnight from London