Another day, another (barely) new low in the Euro:
Prophet.net
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I still think there are good odds for a surprise rally here. We certainly have the set-up: oversold RSI and a positive MACD cross on the daily bar, very low but leveling trader sentiment, and a widely-followed news event to draw in the retail players (the very guys who were so sure of a dollar crash back in the fall).
Take a look and compare the current conditions to September 2008: the patterns are very similar. A break of the line that has contained the decline since mid-January could be the trigger for a short squeeze.
For the really big picture, here’s the whole history of the shaky script. I bet it ends up back to where it started:
Yahoo! Finance
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It just occurred to me that the Euro is the only major currency that has never had any specie backing. It has always been purely the creation of technocrats and bankers. Poor thing never had a chance.
Mike: With the new Tax rules in Greece:
http://globaleconomicanalysis.blogspot.com/2010/02/greece-outlaws-cash-transactions-above.html
and that the PIGS might (or rather will) have to implement similiar new laws …
and with the distinct possibility that USA will do something similiar after the Nov. elections …
that GOLD will start to shoot up?