Thanks for great explanation of the whole situation . So, until Merkel and other German officials won't start getting softer about expanding EFSF (unlikely, but... you never know what politicians will do eventually), then the only thing that can support Euro is lack of bad news.
Right now to break clearly this small ascending channel in which correction took place, one bad but at least medium-important news would be useful. Otherwise I think breaking this little channel my be tougher than expected...
In fact, I dislike that we bounced down the supply level after Fitch downgrade and not before - it is hard to say, whether the resistance itself would be hard enough. But the rejections seemed fairly strong, so even if some Euro positive rumour pushed us higher it shall stand. That is my conclusion for now.
PS. After short consideration, some details of banks refinancing / recapitalisation (or whatever they actually plan to do in EZ) might be another factor slowing the Eur on its way down. But if we don't get any terrific news, then we shall see bottom of the ascending correction-channel, and if get bad news, than support (yes, it is support, not a resistance - was writing in a hurry ) around 1.30 will get touched soon (hopefully ).
Right now to break clearly this small ascending channel in which correction took place, one bad but at least medium-important news would be useful. Otherwise I think breaking this little channel my be tougher than expected...
In fact, I dislike that we bounced down the supply level after Fitch downgrade and not before - it is hard to say, whether the resistance itself would be hard enough. But the rejections seemed fairly strong, so even if some Euro positive rumour pushed us higher it shall stand. That is my conclusion for now.
PS. After short consideration, some details of banks refinancing / recapitalisation (or whatever they actually plan to do in EZ) might be another factor slowing the Eur on its way down. But if we don't get any terrific news, then we shall see bottom of the ascending correction-channel, and if get bad news, than support (yes, it is support, not a resistance - was writing in a hurry ) around 1.30 will get touched soon (hopefully ).