Nov 29

Euro/Dollar Makes New High

by Mike Paulenoff, Wed November 29th, 2006

The Euro/$ made new highs this AM, but has since pulled back. However, my work says the euro has much higher to climb, which among other reasons is why we are not panicking out of the GLD.

This morning's Euro/$ thrust to 1.3215/20 hit my next optimal target zone at 1.32-1.30. However, my near- and intermediate-term pattern and oscillator work argue for considerably more upside after the current rest runs its course. The "rest" period could press the euro back into the 1.31-1.3050 area prior to my expectation of another leg up that hurdles 1.33 on the way to revisit the 1.3660 high from Dec 2005.

Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!