The markets swirled with half truths and assumptions regarding Draghi's assertion that he will do what ever is necessary to save the euro.  On Friday, into the New York open it was rumored that the ECB President Mario Draghi would introduce new measures to reduce Spanish and Italian bond yields, including bond purchase and further rate cuts.  This news pushed the Euro higher once again.  Until later in the day it was revealed the Draghi and the president of the Bundesbank would meet next week.  Showing the markets that the commentary in the morning was really just a list of possible plans rather than a concrete course of action.

From a technical standpoint the EURUSD is still resting about midrange in a descending channel.  The cross rallied this week but fizzled into the finish.  The pair is currently once again below resistance at 1.2330 since pushing higher towards 1.2330.  This place the cross back into the range between 1.2180 and 1.2330 that contained the pair for the first few weeks of the month.  A hold below 1.2330 into the beginning of trading Monday could lead to a push back down towards the 1.2180 to start the week.

Sup        1.2180

Res        1.2330

Keane Insight:  Looking for a hold of 1.2330 for a teat back towards 1.2180.

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