Euro Looks Vulnerable - Market Analysis for May 28th, 2013
We could make the case that the EURO looks increasingly vulnerable to a press that again tests the significant support line that originated at its Nov 2012 low at 1.2660/65, and which cuts across the price axis now at 1.2785.
We can also make the case that all of the action during the past 10 months is carving-out a huge top formation that is putting increasing downside pressure on the 1.2800-1.2750 support zone, which if violated and sustained, will have the potential to unleash ... serious Euro selling pressure.
That said, Is the current near- and intermediate-term technical set-up in the EURO warning us that "the powers that be" are about to throw the EURO into the global currency war?
If Europe wants to complete with Japan, Korea, etc, and to have any hope of growing its way out of its permanent recession, Draghi and Co might just have to opt into the "Japanese solution."