Tuesday, January 15, 2013

Watch your EURO...



The weekly chart of the EURO below shows some impressive strength from mid 2012 to now, rising from 1.20 to currentl levels near 1.33. But as it approaches some major resistance in the form of moving averages and its reaction high from early 2012, as well as its extended momentum gauge as shown on the bottom, it is more a time to be cautious than outright bullish for US equities. Since this is a weekly chart it is not an exact level for today, or this week, but an overall level from which the currency should pull back..and lead a drop in US equiities.



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