- Sharp uptick in EUR on news of 5 central banks (Fed, BOE, ECB, BOJ and SNB) providing interbank with USD liquidity.
- Monthly : Messy trading within huge range; current move looks like a downleg on one of the zig-zags.
- Weekly : Uptrend line broken. Resistance formed by this old TL is now at around 1.40.
- Daily : Bear flag. Rallies such as this are meant to be sold into.
- [From CNBC - Europe's Impossible Choice : The Greek Exit Paradox]
4 comments:
Hi TS,
Whats your take on the Euro? Is there anyway within its present framework that can save it?
Thanks.
I presume you mean fundamentally?
The problem lies in unsustainable country debt levels and impaired balance sheets of banks holding EU debt, (exact parallel to 2008 with mortgage assets which later spilled over to other clases of assets).
How to repair? Come clean and write down holdings to market, raise new capital (possible?), let EUR weaken to spur export growth (will it work with competitive devaluations going on everywhere?), let Greece default (then who next?).
My guess - damn difficult. Perhaps we might see a big rally IF Greece default/exits. But it won't last.
Technically, we need to get above 1.4281 to negate the downside momentum.
Hi TS,
Thanks. It looks like EU is stuck with each other.
Cheers.
http://www.cnbc.com//id/44536212
Post a Comment