On the P&F chart, notice the following.
-- The euro has been rallying for the last 7 years. That's one hell of a rally.
-- The chart may be forming a double top.
On the weekly chart, notice the strength of the multi-year rally. Prices have continually moved higher, going through levels of resistance and then consolidating gains. Also note that prices are consolidating or topping right now.
On the daily chart, notice that prices have had a hard time getting about the 160 level, which is providing a fair amount of upside resistance.
2 comments:
wrt the euro, it seems like people are wondering 1) will the fed's statements/actions have any effect on the economy, 2) can the dollar go any lower (ie just how bad is the US economically in a fundamental sense).
the picture painted by the mass media is mixed; i think they're afraid of being accused of creating a crash. (cf. the FDIC's veiled threat to the webloggers).
i think pretty much everyone is used to the USD being a preeminent currency for exchange and reserve, and i suspect it will take a lot to change that view. what's been happening lately may or may not be enough.
any thoughts?
NB i have no clue what i'm talking about :)
tahnks
http://forex4allworld.blogspot.com
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