Remember a couple of days ago when I said that all is not well with Ireland, despite the relief rally we saw in the Euro? Well the market is now in full agreement and has been all morning, as reaction to the Irish bailout over the weekend, coupled with additional uncertainty in Spain & Portugal, not to mention a very weak auction for Italian bonds at around 5:00 AM EST, have resulted in a veritable beat-down for the EU currency. Currently trading at just south of $1.3100. Charts are posted below....Here's the 30 minute view, showing the drubbing from this morning.....
And here's the daily chart, with an ABC projection penciled in. In a scenario were leg C = A, the target price is $1.2950, though I don't think we'll get there without first doing a bit of retracement.
Although the Euro is getting slaughtered early, don't forget that we have two POMO's on deck today, which are typically not USD friendly, so we could see a bounce sometime around 11:00 AM EST.
Cheers!
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