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The last weeks have clearly exposed the Euro’s limitations.

As the Euro is a collaboration of the economies of the participating countries (16 of the 27 EU countries utilize the Euro as their official currency), if one country’s economy goes up, so does the Euro.

But if  the economy of one participating country burst, as in the case the crash of the Greece, the Euro is bound to take severe hit.

The Euro finance ministers attempts a crisis meeting at this moment in an attempt to restore confidence in the Euro after rumors of more members states having even bigger problems than Greece.

The effect on tomorrows markets is therefore very difficult to predict.

The GBP is most likely to bounce around until a new government is announced. As long as the negotiations is going on, a lot of unscheduled news and rumors can send the price anywhere.

The JPY pairs had some nasty spikes last Thursday, indicating the price could also go anywhere.

So in the coming week, I will continue using technical analysis with a close eye on any fundamental announcements related to the Euro.

Until the dust have settled, I will stay low, be very patient, and let the amateurs blow their accounts.

Happy Trading….

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