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EURUSD at New 2-Year High
The EURUSD broke through its previous 2-year high this morning. Given the economic slowdown in the U.S., many believe Europe's potential for growth is greater than that for the U.S. Traders, in turn, have pushed the euro to new yearly highs against the dollar. As the attached weekly graph shows, the next potential target is around 1.3480. This level was reached in March 2005. It was also the peak of a right shoulder in a rather tight head-and-shoulders top formed between the Fall of 2004 and Spring of 2005. After a swift 1-year decline, the EURUSD has moved up convincingly since the Spring of 2006. __________________ Analysis by FXLogic