Futures Roundup
Euro Fades as Leaders Squabble
Fundamentals
The Euro continues to slide versus the Dollar and Yen after EU leaders failed to agree on much during the crisis summit. The major issue that all parties failed to agree on was joint bond sales, which were strongly opposed by Germany, who cited a need for "stronger economic cooperation." This is bad news for Spain, who was hoping to gain much needed financing. We may see a larger rift growing between economies that are in better shape (Germany, France) and more troubled nations. This could lead to a larger tension that might undermine the Euro currency and eventually lead to its dissolution.
Technical Notes
Turning to the chart, we see the December Euro currency breaking support near the 1.2650 level. The next area of support comes in around the 1.2450 mark. If the market is not able to hold 1.2450, prices could test the 1.2000 level. The RSI indicator is extremely oversold at 10.84, which may help support prices in the near-term.
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About Mike Zarembski
Born in the grain pits of the Mid-America Commodity Exchange (MidAm) in the early 1990s, Mike's futures career soon shifted to the offices of TD Waterhouse in 1999, followed by Xpresstrade in 2002 and eventually optionsXpress in 2007.
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