Market Analysis for Oct 26th, 2004
The Euro surged against the dollar yesterday, and thrust above its 7 month up-slanted trading channel . . . on the way to test the 2004 highs at 1.2925 . . . Who cares? We all should! Why? Because this move could be the beginning of a dollar-devaluation, which is an instrument used by govt's to "adjust" their payments balance, trade balance, DE-flationary expectations, economic growth, etc, etc, etc. Based on the longer term technical outlook for the greenback, no matter who is elected the next President of the United States, increasingly the U.S. dollar's direction during the next several months -- if not longer -- will be down.
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