Wednesday, September 2, 2009
The Euro trades in sink with the close correlated risk taking approach. It still might need a little spike towards the 1.44 before the decline towards 1.20 starts. After so many 'gurus' declared the Dollar to be poised for a extended drop we can be quite sure that first we will see the other side of the Moon. The German elections may enforce more Euro weakness as the sure thing of 'Iron Lady' (that was how the economist described her far from any truth) Merkel is now getting obviously less sure and trouble ahead is the only sure thing going forward. Germany is plunging back to the Weimarer Republic syndrom of the 30's in perfect sink with the markets. The only reason we have Dollar weakness anyway is because America has an competitive advantage and therefor let it drop to a certain degree which keeps all foreign investors from running for the exits. The weekly chartdoes give a clear time frame of another 10 days before the downside move should start. Start selling any strength of the Euro going forward.
Posted by getagrip at 1:40 PM