No Solid Euro Demand Below 1.25

I’ve been waiting months for EURUSD to hit 1.25, and we’re almost there. With the current tone and Germanys stubbornness on the issue of Euro Bonds it is seemingly likely the 1.25 floor will cave in. Upon closer examination of the charts and supply/demand levels, I can honestly say I do not see one single area of demand I would feel comfortable with. Demand has either been partially used up in most cases, or non existent.
 

 
Pictured above is our most recent minor demand level failure. Pictured below is the only current level of demand i would consider in play.
 

51% Predict U.S. Government Will Go Bankrupt Before Budget Is Balanced

How this ill logic prevails is beyond me.

The Federal government is the sole, legal issuer of the U.S. Dollar. Contrary to popular belief the Federal government doesn’t borrow money. After all, they are the sole issuer of currency. Why anyone thinks that the only legal entity to issue currency can somehow run out of the ability to issue currency is, well, flat out retarded.

It’s good to be back with a new blog post. I’ve been absent from blogging for quite some time now. Mostly because I’ve been consumed by the Euro drama, feverishly checking the news at all hours of the day and night. I haven’t made a FX trade at all this year to be honest. Everything has been in some sort of slow motion as if the world is waiting for the EU to right their ship.

I’ve been watching for a bounce to come off of a weekly V shaped bottom. I think i’ll be waiting a while.  While I wasn’t crazy about the idea of playing this V bottom, I’ve been so bored with not trading that I was looking for any excuse just to trade. At the end of the day today, I see no reason to buy here.

In the near term I believe we’re looking to 1.25 for a possible bounce. Should 1.25 fail we’re probably headed for this 2002 double top at dare I say… Parity.

We turned down this morning nearly exactly on my $12,400 call back in November. As of now buyers have stepped in and bought all that up. After taking a closer look last night, I believe the DJIA is headed higher or will be bound to a tight trading range.

As for my most recent post on EURUSD, we’re still diving toward 1.25 as i expected. It will be interesting to see the news out of the EU when we reach the 1.25 mark. It’ll be do or die at that point.

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As fucked up as the whole euro debt crisis was the past few months, we’re actually approaching an area i’m interested in buying. What happens when we get to 1.25ish will be the deciding factor. If 1.25 fails miserable we’re looking at EURUSD 0.9925 as the next buying opportunity.

What happens with the Dow from here is, well, a downturn as stated here. For how long I do not know. I haven’t examined the charts close enough yet, but I plan to mull over them tonight and report back here tonight or tomorrow. Whether or not we turn down here isn’t really “known”, it’s probabilities. Of course, it’s entirely possible we do not.