Weekly Review: Greek Crisis Dominates the Markets

Written by: Dime Levov • Monday, May 21, 2012 • 2 min read

• Last updated: Monday, May 21, 2012

Last week ended with the Euro turning upwards against the U.S. Dollar and the British Pound, to claw back at least some of its heavy losses from the past couple of weeks. Nevertheless, the situation in Greece really concerns investors, who worry that its impact will spread beyond the Euro zone.

After finding support at 1.2650 (this year's low) it made a technical correction, up to 1.2783. I find it hard to believe that this indicates a serious uptrend in the near future. The Japanese Yen gained some power against the U.S. Dollar, and the big question remains “When will the big reversal show up?” This pair is extremely oversold, and we might see this pair going for a long trip in the days to come.

This week our signals system will concentrate on the Japanese Yen, U.S. Dollar, and the Euro. The Canadian Dollar will also gather a lot of trading activity.

Take a look at last week's impressive profits and losses report from our FXML Forex signals:

profits and losses report on closed signals

With 21 wins out of 26 signals overall (more than 80% win rate!), and accumulating profits of more than 400 pips, I can safely say that so far, May has treated us traders very well! Our sources took advantage of the Euro's downfall, hitting five of six signals, and gaining more than 200 pips.

So what happened in the markets? Take a look at three of the most volatile charts of last week, the EUR/USD and USD/JPY:

After breaking its 1.3000 support, the EUR/USD pair went short on a massive bearish trend, all the way to a 1.2650 new support. The USD/JPY descended 100 pips in Friday's session before stopping at 79.12.

Most of the traders in the market went bullish on the USD/CAD, pushing it to a new high, after disappointing reports from the Canadian market, and a search for safe currency havens led many to buy back the U.S. Dollar.

Good luck trading in the week to come. With the Euro crisis still very much at the center of things it could be a bumpy ride … but it’s sure to be exciting!