Wednesday, April 30, 2014

EES: Can the Euro continue to climb?

Take a look at the following daily EUR/USD chart:

Certainly, there are many technical traders that would say EUR/USD is about to pop.  But fundamental influences, including but not limited to the situation in Russia/Ukraine, an unresolved debt crisis in Europe, and other economic factors, should give technical traders pause about being long EUR/USD at these levels.

Helping the EUR/USD pair are their central banking friends across the pond at The Fed, that have today sent stock markets to all time highs, giving traders little reason to buy the USD, which seems to have reached its peak as a global reserve currency.