This is the overall Euro chart since its initiation;
I call this the 'losing steam chart'. When you look and analyse a chart like this, you see a tremendous uprising in its value in the beginning of 2000, like I said before, mainly due to speculation.
Given the fact that fundamentally Europe has a stronger economy than the US, its 'fair value' lies at 1.10 - 1.20 at the upside. Now it seems investors and speculators alike, realize that the overvalued currency may be in a downwards spiral from here on out, pretty much down to its actual value.
What does this mean for short term, mid term trading? Well for short term, I'd wait for a little upswing first before entering a short position, in that way you'll harvest those extra pips before you can buy it back it a few moments later. For mid term analysis, if you already short this pair, you're good. I'd monitor what velocity the pair moves in first though and keep a close eye on it. If it hits 1.37 next week, hold on tight, you might be in for hefty profits!
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