On the left hand, the daily chart of EURUSD and very clearly after a consolidation its poised to fall further towards next target 1.31 but the real target is 1.22 within 2-3 months. This is also important if you have the idea to buy gold, which everyone should, but not before it bottomed out respectively Euro made its low. The current dropping inflation numbers will be a drag on Gold as will be the rising Dollar. As you can see the first wave down was from 1.60 to 1.40 - those 20 points close the 120/22 target by wave length which matches a 50% retracement of the overall upside trend of the EURO. Hence, if you still hold non-US assets or stocks (except Chinese) you might get hurt more by the decreasing value of the Euro on top of the dropping value of those assets.
Saturday, October 18, 2008
EURUSD technical outlook - Dollar poised to rise further
On the left hand, the daily chart of EURUSD and very clearly after a consolidation its poised to fall further towards next target 1.31 but the real target is 1.22 within 2-3 months. This is also important if you have the idea to buy gold, which everyone should, but not before it bottomed out respectively Euro made its low. The current dropping inflation numbers will be a drag on Gold as will be the rising Dollar. As you can see the first wave down was from 1.60 to 1.40 - those 20 points close the 120/22 target by wave length which matches a 50% retracement of the overall upside trend of the EURO. Hence, if you still hold non-US assets or stocks (except Chinese) you might get hurt more by the decreasing value of the Euro on top of the dropping value of those assets.
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