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Euro Threatening “Lehman Brothers Low”

Discussion in 'Forex Daily News & Outlook' started by forextrends24, May 15, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The EUR USD touched its lowest level since October 2008 on Friday as investors continued to pull out of the currency on the fear that political and economic problems will lead to a collapse of the Euro Zone economy. The rapid decline is pushing toward the so-called “Lehman Brothers Low at 1.2329. This support was established at the height of the global credit crisis and marks a time when a global financial disaster was avoided.

    Although some feel that the world’s financial system is better prepared for a credit shock than it was back in 2008, a break through this level will have psychological ramifications as well as symbolic meaning. It will be used as a benchmark among global investors who will question whether the world has learned anything following one of the greatest financial meltdown’s in history.

    Besides the risk of sovereign debt default, investors are now becoming concerned about the lack of activity and the inaction from the European governments. Once again investors are asking the question “where is the union in the European Union”.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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