Euro begins the new year falling and rebounding.
Once it became apparent that a deal was in the works for America to avoid the fiscal cliff, the euro began to slip. On January 3, one day after the ink on the agreement had dried, the euro sank from approximately $1.32 to around ETF, NYSEARCA:UUP, NYSEARCA:FXE, NYSEARCA:EUO, NYSEARCA:FXA, NYSEARCA:FXY $1.30. After the minutes from the December 11-12 meeting of the Federal Reserve’s Federal Open Market Committee were released at 2:00 on Thursday, raising concerns that quantitative easing could end by mid-2013, the euro was able to make a comeback on Friday. Fiscal Cliff “Deal” Doesn’t Deal with Real Issues at All
The chart below depicts the trading activity in the CurrencyShares Euro Trust ETF (NYSEARCA:FXE) during the past 180 days (Chart courtesy of Stockcharts.com). As the chart indicates, just before the January 4 rebound, FXE was about to decline to its 50-day moving average of 128.90. Friday’s bounce brought it up to 129.81 – although the Relative Strength Index remained at a precarious 47.99.
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Once it became apparent that a deal was in the works for America to avoid the fiscal cliff, the euro began to slip. On January 3, one day after the ink on the agreement had dried, the euro sank from approximately $1.32 to around ETF, NYSEARCA:UUP, NYSEARCA:FXE, NYSEARCA:EUO, NYSEARCA:FXA, NYSEARCA:FXY $1.30. After the minutes from the December 11-12 meeting of the Federal Reserve’s Federal Open Market Committee were released at 2:00 on Thursday, raising concerns that quantitative easing could end by mid-2013, the euro was able to make a comeback on Friday. Fiscal Cliff “Deal” Doesn’t Deal with Real Issues at All
The chart below depicts the trading activity in the CurrencyShares Euro Trust ETF (NYSEARCA:FXE) during the past 180 days (Chart courtesy of Stockcharts.com). As the chart indicates, just before the January 4 rebound, FXE was about to decline to its 50-day moving average of 128.90. Friday’s bounce brought it up to 129.81 – although the Relative Strength Index remained at a precarious 47.99.
Read More