So long,cheerio, adieu, adios, au revoir, auf wiedersehen, Euro?
Some 4 years ago we posted a chart(www.tradingview.com/...-Long-Term-Analysis/) showing the Short designated as Short #1 on this chart and referred to it as an intermediate short on the previous chart. Long term short is above @ the 1.585 level and its first target is referred to later in this post.
We have made no secret of the fact that our opinion has been and is that there is no fundamental or technical reason for the euro to be above parity with the USD. Currency manipulation is the stock in trade of governments and the market is seeing the unwinding of positions due to undeniable structural cracks in the EU. Whether the pro-Euro manipulators will return @ parity we will have to wait and see.Major corporations who have held their off-shore earnings in euros are bleeding pretty badly, but their efforts to prop up the currency has failed.
If we can reach these targets, expect every long and short in the world to join the fray. Normal market behavior would be a period of profit-taking and then a resumption of the down trend.
Our long Term short target is around .886. If below parity holds, this target may be reached very quickly.
We have made no secret of the fact that our opinion has been and is that there is no fundamental or technical reason for the euro to be above parity with the USD. Currency manipulation is the stock in trade of governments and the market is seeing the unwinding of positions due to undeniable structural cracks in the EU. Whether the pro-Euro manipulators will return @ parity we will have to wait and see.Major corporations who have held their off-shore earnings in euros are bleeding pretty badly, but their efforts to prop up the currency has failed.
If we can reach these targets, expect every long and short in the world to join the fray. Normal market behavior would be a period of profit-taking and then a resumption of the down trend.
Our long Term short target is around .886. If below parity holds, this target may be reached very quickly.
Comment:
Typo on the LT target has been corrected.