Euro Dollar: Violent stall the single currency Tuesday, June 1, 2010 at 11:30

After a quiet Monday in the foreign exchange market in the absence of many operators because of holidays in the United States and Great Britain, volatility is back, including the Euro / Dollar exchange, which revives an acceleration clearances. The Euro still under pressure in a context of budgetary difficulties of a number of States members of the Monetary Union of the Old Continent, just push the threshold to bluntly $ 1.22. She also suffers from a taste for risky assets far less important as evidenced by the stall in the morning of the main European stock exchanges.

Around 11:20, the spot EURUSD is approximately 1.2125.

From a graphical perspective, the cross comes in the morning to undergo a very violent drop of 175 "pips". If we remain bearish on the euro, it must nevertheless, in the short, be wary of installing a phase of consolidation, see a movement buyer contestaire technical type. In a risky situation finally the sense of money management, we prefer simply to remain neutral in the short term.
In this context the team Tradingsat.com emits a neutral for the next few hours and offers traders stay out of the market in anticipation of coming clear signs. Nevertheless, we take care to note that a crossing 1.2200 rekindle tensions with the purchase of 1.2100 while a break would boost pressure selling.
On the macroeconomic side, traders will acquaint the ISM manufacturing index and U.S. construction spending at 16:00. (Paris time)

Hourly data chart: