The Euro Still Has Room To Run
- Posted by TheArmoTrader
- on September 11th, 2012
The Euro has shown strength since the day Draghi declared he’ll “do whatever it takes to preserve the euro“. This has caused a massive rally in the euro (ironically, because that means “printing” right?) causing it to go from sub 1.21 to currently 1.285 ish.
While its hard to see what the future holds for the Euro, short-term, it looks like the Euro still has room to run. It has moved up in a orderly manner (not too fast) and now is above the major moving averages (50 day and more importantly the 200 day). It also broke a pretty major downtrend line earlier this month.
The path of least resistance for now is higher to the 1.30 area, where it held earlier this year but finally broke below in May. I would expect some profit-taking and/or resistance when it hits that level, especially if it happens soon. What it does from there is too much of a hard call for now (especially with the major FOMC September announcement on Thursday).
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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