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Wednesday, February 24, 2010

EUR update

The assumed correction in week 5/6 was very flat so far - I had expected to see the 1.40 level. We are still on to the target at 1.28/30 as the monthly trend is very strong still but the very likely turning point is around the 10th March which will match a weekly 9 count. At least we should see a strong bounce especially from the target price level (1.28/30). We can expect more follow through the next 2 weeks as we might get a camouflage solution for Greece but the real problem for the PIIGS remains unsolved - well in real terms no remedy possible as the ongoing depression will rather worsen the situation. The point is only that DC needs a weak Dollar so they will despite all rhetoric try to fabricate a new weakness and should be on top of the action soon again. Right now they play along as it helps to sell the big supply of bonds with a stronger Dollar.

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I am a professional independent trader