During this week financial markets have been shaken like never before. Accompanied with low systemic financial disasters like bankruptcy of major investment banks in the United States. A crisis that we all thought that it was happening on that side of the Atlantic ... unthinkable a world financial sector in ruins ... But as Hollywood movies came the cavalry to the rescue with an unprecedented emergency program. The reaction was immediate in financial markets worldwide to record records of increases in their indexes.
The mortgage crisis is deeper than we had estimated and the news has surprised everyone. This crisis has produced a lack of liquidity in the currency markets. Currently
see the future with great uncertainty about what may happen in the FOREX Market EUR / USD. On the one hand we have a confirmation on the deteriorating growth prospects in the euro zone, pushing the euro lower. And secondly, a U.S. economy that will strive to maintain a competitive advantage to heal the financial sector, pushing the dollar lower. Important News
to be expected is the implementation of the measures the government of the United States Congress.
We predict a large market stability FOREX EUR / USD in conjunction with a large illiquidity. We recommend to stay away for now.
Technical Analysis
We see that the price of the Euro has broken the main trend line down marking the end of the bullish rally of the dollar against their peers. Currently the Forex market EUR / USD may go back into an upward trend or just enter a cycle of congestion where points would be close to 1.4500 and not less than 1.4000.
Our technical indicators clearly indicates a long-term bullish advising enter the Euro. As we see in our next picture.
After seeing how critical financial markets are recommend to stay away for now. And if you want to open positions in EUR / USD would recommend go along with a very tight Take Profit.
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