Psychology focused report on the future of the Euro
Comment of the Day

April 13 2011

Commentary by Eoin Treacy

Psychology focused report on the future of the Euro

Thanks to a subscriber for this report which I'm sure will be of interest to the Collective.

Eoin Treacy's view The Euro Trade Weighted Index has been ranging in a volatile manner since 2008. It found medium-term support above 120 from July and sustained a progression of higher reaction lows since. The Index has rallied impressively over that few months, at least in part as a least bad alternative to the Yen or US Dollar. It has posted a positive return in 9 of the last 10 weeks and is now short-term overbought. A consolidation of recent powerful gains is looking increasingly likely but a clear downward dynamic would be required to indicate the onset of such a reaction. However, a sustained move below 122, a distant prospect at this stage, would be required to derail potential for some additional higher to lateral trading over the next few months.

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