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Thursday, November 4, 2010

EUR update

The 600 bil. triggered a spike in the EUR after the correction was a bit more shallow than thought. We are testing the trading channel resistance as the Dollar Index makes a daily 12 within a weekly 9 count. Second day above the Bollinger is a strong promise for imminent pullback within 24h by 1 cent. A very strong resistance comes in from the weekly chart around 1.45 - still we might not reach that anyway and 1.43 should mark the high for now after the Eur was declared dead back in summer this year. EU's problems will be back on the front pages soon as current Euro level will kill the brief German upswing anyway after losing 20% competitive advantage. Japan has to step up a bold fight as well against its currency strength hence the globalization trade is about to falter and trade war about to be taken into next gear . The other nations can not afford to let USA bail it self out on behalf of them with weakening the Dollar any further as the economic state is very fragile to say the least. From the 1.43 level we can expect to drop 10-12 cent the next weeks before the final sell out of the Dollar starts towards 1.60 when the gridlock effect comes to full fruition. Against the myth Wallstreets propaganda machine tries to brainwash us with gridlock is not good with a depression in the rise in none of their statistical bullshit is any comparable situation to the current one except the big depression or Japans slow motion depression. Japan is not comparable as they have a total different approach as they did not allow the jobless rate to reach 7% with USA already at 17%. America is rather on the path of the Weimarer Rebublic printing money scheme and commodity prices are already on the verge mode to hyperinflation.

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