Once the EURO was KING. A combination of strong fundamentals and a hawkish rhetoric by the ECB supported its ascent towards the "promised land" of 1.50 (vs. the US Dollar). But like most financial euphoria, this one fell short - it stalled at 1.4963, 1.4921, and 1.4953, leavings the bulls frustrated. When the Euro went down recently on concerns that the ECB would be forced to consider lowering rates in response to the Fed and BOE, the bulls literally threw in the towel. But herein lies the opportunity. For if the low of 1.4438 represented a "capitulation" of sorts, then the Euro could be on its way up. The rumours of Oil being priced in Euro's only adds fuel to the fire, and a struggling 10-year yield which cannot break out decisively of its downtrend line could lend fundamental support (A Swiss Franc swoon typically results in a uptrend for the Euro). So could it be that we're looking to hit the upper end of the triangle on the Daily Charts again (circa 1.4900)? You decide. BUY and average down.
ChiefShook
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