Monday, May 7, 2012

While UK is on holidays and France cheers for new president ...

Change of the president in France - which definitely puts a question mark on the continuation of the German-Franco (Merkel - Sarkozy) tandem - had its reflection in the EURUSD rate and the EUA price as well.

We continued falling thru 6.62 and found a support only @ 6.45 euro - a level which started the April bull run after double bottom @ 6.00 euro. Previous support @ 6.81 is now a resistance.

With the long-anticipated transition to the Union registry (
and all the worries, difficulties and obstacles ahead) and - lets be honest here - the deadline for it coming back online being really uncertain (despite the EC commitment to 20 June) I can imagine more sellers closing spot sales before the national registries goes off line at the beginning of June which can put - yet additional - pressure on the price.

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