Let's notice that a downside violation of 1.2330 completes a
massive 4-year top pattern that could "unhinge" the EUR altogether
and send it into a vertical tailspin towards 1.1640/50 on the way
to parity with the USD -- a move that certainly will get the
attention of the ECB and the Fed, which vowed to defend the
integrity of the EC last weekend.Should the aforementioned downward
spiral in the EUR emerge throughout today's session, we should
prepare for intense and persistent Central Bank intervention,
perhaps starting later today, Sunday night, and into Monday, as the
"authorities" attempt to brake and preserve the Euro as some
(lower) price. This could get very ugly, and is a battle the
Central Banks can ill afford to lose, lest the efficacy of the
world's institutions be completelyundermined.ETFs to watch are
Currencyshares Euro Trust (NYSE: FXE) and the SPDR Gold Shares
(NYSE: GLD), which has tended of late to move in sync with the
dollar.
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Excerpted from Mid-Day from Paulenoff
Posted by Peridot on 14th of May 2010 at 02:54 pm
Mid-Day from Paulenoff
Let's notice that a downside violation of 1.2330 completes a massive 4-year top pattern that could "unhinge" the EUR altogether and send it into a vertical tailspin towards 1.1640/50 on the way to parity with the USD -- a move that certainly will get the attention of the ECB and the Fed, which vowed to defend the integrity of the EC last weekend.Should the aforementioned downward spiral in the EUR emerge throughout today's session, we should prepare for intense and persistent Central Bank intervention, perhaps starting later today, Sunday night, and into Monday, as the "authorities" attempt to brake and preserve the Euro as some (lower) price. This could get very ugly, and is a battle the Central Banks can ill afford to lose, lest the efficacy of the world's institutions be completelyundermined.ETFs to watch are Currencyshares Euro Trust (NYSE: FXE) and the SPDR Gold Shares (NYSE: GLD), which has tended of late to move in sync with the dollar.