EURUSD Fundamentals

Hi there,

Ok, this is the big picture. The US economy is closer to a recesion than a few months ago when all of us where speculating and pushing the USD down. Now it is almost a reality, so what do we must expect? A dollar going really down against Euro? Or, basing on the "buy with the rumor and sell with the news" are we ging to see a dollar recovery?

I'm expecting for the next few days or weeks a raising trend from 1,5600 to 1,6000 or higher. The last high was 1,5904 two weeks ago.

I don't know, but, if i am correct and the euro break the last high, we are going to see it maybe at 1,6500 or 1,7000.

Good pips for all of us!!!

Jose

Last COT showed dollar gaining ground. Yes we're in a recession... but we're further along in it and much of Europe is just starting to show the nasty face of stagflation.

Do I think we're "out of the woods" yet? No, look at what Bernanke's speech did when he uttered "the r word." Still too much fear out there. But for now we're seeing relative dollar strength against weakening currencies. Remember it's not about "being strong" and "being weak" but rather being stronger or being weaker than last week. Everything else is priced in.

Not that it really matters. When it comes to trading the charts I just trade what I see... not what I think. But it's still fun to speculate.