Yohay

Euro/dollar finally broke down, lost uptrend support and the critical 1.30 line, as the debt crisis worsened once again. Yet it didn’t collapse. Does this point to a correction, or more gradual moves downwards? The upcoming week is packed with events, with GDP figures expected to show that Europe is in a recession. News from Greece and Spain will also weigh. Here is an outlook for the upcoming events and an updated technical analysis for EUR/USD.

Elections in Greece resulted in a deadlock, and the debt struck country will likely head into a second round of elections in June, as anti-bailout parties gain momentum. Worries and the uncertainty certainly weigh on the euro, together with Spain’s banking issues. The Spanish government’s decisions for the banking system might provide some support, but it seems that Spain is “going Irish” – making the banks’ problems its problems. In Ireland’s case, it ended with a bailout. Will Spain have the same fate?

Read the rest of the article [B][I][URL="http://www.forexcrunch.com/eurusd-outlook-may-14-18/"]EUR/USD Outlook May 14-18[/URL][/I][/B]