Forex Zone (Forex Zone)
Czech markets  |  December 19, 2012 09:18:06

Berlusconi: "We will be forced to leave the euro"

Known "flirt" and the controversial figure of Italian political scene Silvio Berlusconi shocked again. Reuters has reported that Silvio said something unimaginable. Before we get to what he said, so allow a little detour. When we got yesterday after the breakdown of large margins talking about the euro and one of our well-known trader said that the problem is Italy and the amount of interest for which it borrows and it completely ignores the euro at the moment.

Well, today we read that Berlusconi broke taboos and tell the truth. "If Germany does not accept the fact that the ECB must be real and central bank interest rates are reduced, we will be forced to abandon the euro and return to our currency to remain competitive." He said.

This statement is actually timed it perfectly. Yesterday had been punctured margins on a weekly chart, in which the price ranged from mid-September. Although we did not find fundamentally strong arguments for the strengthening of the euro, we must accept what the market tells us.

It takes our belief that the current market price (1.3240) are likely targets for testing to the level of 1.2800. Their test is not on the agenda. Whatever the current movement in the EUR / USD from our perspective, however irrational, and from our analysis shows that the price is above the high margins accepted and it indicates to us that we can expect a continued move higher.

With the market last traded at current prices in the spring of this year, so we have only long-term resistance. They perceive about 1.3340 and about 1.3500. Today we see a great chance to test today's Asian session low. Otherwise, we expect the direction of trading between 1.3210 and 1.3300.

Uptrend is really strong and unhealthy. Market is growing at almost 7 days in a row and with every increase in the "asking" for correction. We ourselves wondering how far will this irrational movements continue until the correction comes. But if the correction comes, it starts in our view, only the negative macro news.

Read also:

Prime Minister pushes the Japanese central bank

Last news from the section Czech markets:

Pá 11:48  Avast koupí slovenskou vývojářskou firmu INLOOPX Patria (Patria Finance)
Pá   9:58  PKN blízko vytěsnění minorit Unipetrol Research (Česká spořitelna)

Zobrazit sloupec 
Moner | ISIN database | Weather forecast
Česká verze - Akcie cz, kurzy měn, forex, zlato.
Favorite: Prague Stock Exchange Czech crown Czech economy Commodities Gold Trademarks Prague Weather

Copyright © 2000 - 2018, spol. s r.o., AliaWeb, spol. s r.o.,

ISSN 1801-8688