Next Bottom for Euro
The CFTC just issued their latest Commitment of Traders report, citing an all-time low in bearish positions. There’s another round of talks scheduled this week, attempting to convince bond holders to take a deeper cut in an effort to reduce the Greek debt burden. If a consensus isn’t reached, it is not yet clear that Greece will be able to meet its obligations and targets for the first part of 2012.
According to Fibonacci projections, our next target is at 1.2574, and any up moves we might see today are merely a retracement to test the new weekly central pivot point at 1.2803 as resistance. If Greece gets a reprieve and 1.2803 fails to hold, then there might be an opportunity to trade back up to 1.2968.