Courtesy of Mish.
Reader Toney writes …
Hello Mish,
Please consider writing a piece on your blog explaining why EUR USD is not more eroded. It would seem that given the Euro zone’s current troubles, the Euro would not have remained as strong as it has.
I read your blog religiously.
Thanks
Toney
Hello Toney, would not exactly call 1.23 “strong” but certainly there is room to fall. So why is it just sitting?
Technically, the euro is at the lower end of a trading range and that would tend to bring out some buyers and some short covering. From that aspect, one might even wonder why the bounce has been anemic. A weekly chart will show what I mean.
Euro Weekly
Technically, the euro can plunge a long way if that weekly support gives way. Will it?
Key Questions on Breaking Up
Right now the currency market is torn between whether or not the eurozone stays intact, and if not, what countries leave and how.
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