EurAnalysis

Very true, until the fear/hope of QE3 goes away and/or the EZ shows its true shortcomings. Italy is next people, don't think it isn't. Just because the media has not been focusing on it means nothing. Spain is not in great shape either.

The solution for Europe will be federalization or at the very least, the issuance of Eurobonds. Until then, it will just get worse.

I'm going to archive this post so that I can show it to you in a few years and we can both have a good laugh

TAG:ARCHIVE

Do that! It is fun to look behind in a few years...

ADD. Summer is coming and there is lots of behinds to look...

Nice Billyt

There was no Euro in 1971

take care guys, good trading

Believe it or not there actually was, but it was a very different beast back then and it wasn't even called the Euro. It was called the ERM (European Exchange Rate Mechanism) and was used strictly for exchange rate control. It was not traded and nor was it legal tender. The Euro as it is today came into official existence in 1992 with the signing of the Maastricht treaty, and became official tender in many EU states in the late 90s

As for 1971, you may be right. From what I know, the ERM came into existence in the late 70s, but there may have been something before it. I'm not that up to speed on the Euro history.

ADD: If anyone is interested, look here >>> http://www.ibiblio.org/theeuro/

From wikipedia

http://en.wikipedia.org/wiki/History_of_the_euro


"A first attempt to create an economic and monetary union between the members of the European Economic Community goes back to an initiative by the European Commission in 1969, which set out the need for "greater co-ordination of economic policies and monetary cooperation."[3] This was followed up at a meeting of the European Council at The Hague in December 1969. The European Council tasked Pierre Werner, Prime Minister of Luxembourg, with finding a way to reduce currency exchange rate volatility. His report was published in October 1970 and recommended centralisation of the national macroeconomic policies entailing "the total and irreversible fixing of parity rates and the complete liberation of movements of capital." But he did not propose a single currency or central bank.[4] An attempt to limit the fluctuations of European currencies, using a snake in the tunnel, failed.

In 1971, US President Richard Nixon removed the gold backing from the US dollar, causing a collapse in the Bretton Woods system that managed to affect all of the world's major currencies. The widespread currency floats and devaluations set back aspirations for European monetary union.[4] However in March 1979 the European Monetary System (EMS) was created, fixing exchange rates onto the European Currency Unit (ECU), an accounting currency, in order to stabilise exchange rates and counter inflation. It also created the European Monetary Cooperation Fund (EMCF)"

SNAKE IN THE TUNNEL
ALSO WIKIPEDIA
http://en.wikipedia.org/wiki/Snake_in_the_tunnel

The snake in the tunnel was the first attempt at European monetary cooperation in the 1970s, aiming at limiting fluctuations between different European currencies. It was an attempt at creating a single currency band for the European Economic Community (EEC), essentially pegging all the EEC currencies to one another.

Pierre Werner presented a report on economic and monetary union to the EEC on 8 October 1970.[1] The first of three recommended steps involved the coordination of economic policies and a reduction in fluctuations between European currencies.[2][3]

With the failure of the Bretton Woods system with the Nixon shock in 1971, the Smithsonian agreement set bands of ±2.25% for currencies to move relative to their central rate against the US dollar. This provided a tunnel in which European currencies to trade. However, it implied much larger bands in which they could move against each other: for example if currency A started at the bottom of its band it could appreciate by 4.5% against the dollar, while if currency B started at the top of its band it could depreciate by 4.5% against the dollar; if both happened simultaneously then currency A would appreciate by 9% against currency B. This was seen as excessive, and the Basle agreement in 1972[4] between the six existing EEC members and three about to join established a snake in the tunnel with bilateral margins between their currencies limited to 2.25%, implying a maximum change between any two currencies of 4.5%, and with all the currencies tending to move together against the dollar.[5] This agreement also led to the formal end of the Sterling Area.

The tunnel collapsed in 1973 when the US dollar floated freely. The snake proved unsustainable, with several currencies leaving and in some cases rejoining. By 1977, it had become a Deutsche Mark zone with just the Belgian and Luxembourg franc, the Dutch guilder and the Danish krone tracking it. The Werner plan was abandoned.[3]

The European Monetary System followed the "snake" as a system for monetary coordination in the EEC.

...and there you have it. Hail Wiki

...and price has been bullish ever since.

hmm i am back from interview its was reasonably ok.PT i did thing as per your advice and those damn shrinks looking at me like zombies.anyway we will know the result in few days.if i get into it my salary will be up significantly. market ahh not much action so i havent miss much

Well, best of luck. Me, I'm a full time trader so I make my own salary and it's not likely to change unless they abolish the FX markets.

Okay stop. I cannot "BEAR" it any more.

Oh look, a bearish bat on M1. That should be good for 0.2 pips

Scalper extraordinaire!


Is that an indicator you are using to draw your harmonic pattern?
If so, where might I find one?
I want to draw beautiful women

I won't draw beautiful women but it creates nice shapes

Thank you sir! I will dabble with it.

We've got news, news and more news coming up between now and Friday close. Be on your toes coz the next 24 hours may dictate where this pair is heading short term.

Looks like price just fell off a ledge.

Let's see if the ledge was more than 6 cm. high.

hopefully we can break through 1.318