Thursday, June 21, 2007

Is The Euro About To Go Higher?

A reader asked me if I was also bullish on the Euro so I decided to answer her question with this post.

As you know I am bullish on the British Pound and bearish on the U.S. dollar so naturally I am bullish on the euro. As you can see in the above chart the Euro has the same 16 week cycle that the British Pound has so I would expect some kind of rally in the coming weeks. You'll also notice the oscillator is in the buy zone which tells me the Euro should be bought now.

If you've been reading my blog you would know that I've been saying the British Pound is the better currency to own because it is stronger than the euro and the Swiss. In my opinion if these currencies do rally, the B-Pound should outperform the other currencies and that's why I am long only the pound.

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