EURUSD Short term Triangle - Technical Analysis - November 2, 2011 12:52 AM EST

I would not be surprised to see this triangle breakdown and make a run for short term lows.  No news is bullish for the EURO, the deal that was reached last week to save the Eurozone has been tossed out the window with the Greek Referendum called.  No one can expect a country that is being squeezed by an economic slowdown along withe riots and crippling strikes, will vote for more pain in the short run.

Reality sets in (at least in the short run) - S&P500 down over 2.2%, Eurusd collaspes

Anyone that participated in that ridiculous rally on the news that the Eurozone is "saved" have just got served.  The price action has moved sharply lower.  This Candle stick pattern some what fits the classic Evening Star

  

The EURUSD has led that collapse as Greece have been discussing a potential referendum on the current plan.  Judging by the number of violent riots and strikes I highly doubt the referendum will pass with flying colours.

EURUSD Plunges on news that MF Global is nearing bankruptcy

5 min chart, as you can see Eur/Usd just woke up to negative this Sunday.  The pair has continued to drop since this screen shot.

For an updated chart check out: freestockcharts.com

From Zerohedge / Bloomberg

• CLEARINGHOUSES SAID TO PREPARE FOR MF BANKRUPTCY, WSJ SAYS
• US REGULATORS ALSO PREPARE FOR MF BANKRUPTCY, RESTRUCTURE: WSJ

EuroSummit Over EURUSD Chart almost at 61.8% of August peak

Tough resistance above for the EURUSD.

The EuroZone Plan of 1 Trillion Euro EFSF seems smaller than the market has priced in.
The 50% hair cut of Greek debt was a given.

EUR/USD review - Options Expiration Week watch for Volatility

Watch for breaks of the above indicated levels of support.  EuroZone has 1 week to deliver a collective solution to tame fears of a global recession.

From Bloomberg: G-20 Tells Europe to Deal Decisively with Debt Crisis at Oct-23 Summit

European officials “will have left Paris under no misunderstanding that there is a huge amount of pressure on them to deliver a solution,” U.K. Chancellor of the Exchequer George Osborne told reporters. Next weekend “is the moment people are expecting something quite impressive.”

Options Expiration Week

Keep a close watch on the VIX

Economic Events Calendar from Bloomberg 

S&P Downgrades Spain from AA to AA-. EUR/USD Topping?

With Spain just downgraded from AA to AA-, is it time for this run up in EUR/USD to give way in the short term at least.

Wall Street Journal provides an overview of this event:

-- S&P drops Spain to AA-, three notches below top AAA rating, with a negative outlook
-- Cites banking sector risks, says labor market reforms needed
-- Move follows Fitch's downgrade of Spain last week; Moody's could be next

Is the EUR/USD done? Weakness at the top of triangle detected

The past week has seen the EUR/USD not able to break above a triangle that it is stuck within. The apex is coming fast and furious and breaks below the support around 1.425 could result in dramatic selling.  Keep watching this Forex pair for signals to where the overall world economy is headed.  Even though USD looks in the long term to end much lower than it is currently, if the S&P 500 / Dow rolls over, liquidation will give the USD a bid crushing the EURUSD pair.

EURUSD Technical Analysis Chart - Triangle for EUR/USD which way will it break?

Massive Triangle the EUR/USD is in.  It will be interesting to see how this forex cross deals with the overbought condition on the market with in the next couple of days.

This market is going to be dramatically affected by the on going debt problems in the EuroZone along with the US debt woes.