As expected another test of the 1.43 area and we even should make a slightly new high within the next days before turning down. It will be interesting to see how close the correlation is to stocks as they need another 3-4 weeks at least to finish the tops the EUR will not exceed the strong 1.44/5 barrier before a sharp downmove will start with a 1.20 target. The FED has redrawn all currency swaps it gave out to foreign central banks limiting the exposure of forced buying. We can expect aa short term pullback which we also should see from stocks but stocks will make new highs which I doubt the Euro will make as it also did not make new lows in March.
Wednesday, July 22, 2009
EURO tech general update
As expected another test of the 1.43 area and we even should make a slightly new high within the next days before turning down. It will be interesting to see how close the correlation is to stocks as they need another 3-4 weeks at least to finish the tops the EUR will not exceed the strong 1.44/5 barrier before a sharp downmove will start with a 1.20 target. The FED has redrawn all currency swaps it gave out to foreign central banks limiting the exposure of forced buying. We can expect aa short term pullback which we also should see from stocks but stocks will make new highs which I doubt the Euro will make as it also did not make new lows in March.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment