closed about 55 pips above its monthly MA200 this week, and I while I'm not really looking to buy the euro
, it's worth noting the importance of the $1.2230 level in December. The June 2010 and July 2012 lows were both set when the market tested the monthly MA200, which is why I am particularly interested in the $1.2230 level right now. Needless to say, the fundamentals for the euro
were pretty ugly during both these periods, and yet major trend reversals took place. It's going to be really interesting to see if the euro
is capable of holding above the $1.22handle at the end of this year as a break below will most likely see the market hit $1.19-1.20 in the beginning of 2015. I figure that a break below the MA200 could reinforce the probability the the euro
breaks it's 2010 lows next year, which obviously is what the majority of traders think anyways.