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CurrencyShares Euro ETF Message Board

  • bryanleighton bryanleighton Feb 20, 2013 12:02 PM Flag

    The Euro Still Has Further Downside

    These days we are constantly hearing about currency wars taking place across the globe. Almost every leading country is trying and racing to devalue their currency in order to boost their exports. Just look at the recent action by the Japanese government and the Bank of Japan (Japanese central bank). The Japanese finance minister actually stated they his goal was to get the Nikkei 225 Index up to 13,000 by the end of March. You cannot make this stuff up. Never before has a prominent government figure made such a comment.

    Last week, there was a G-20 meeting in Moscow, Russia. This was a pow wow between central bankers and finance ministers. Many talking heads in the media reported that the goal of the meeting was to stop all of the money printing that is going on in almost every major country in the world. We know that nothing has really changed since that meeting. Many Euro-zone countries are complaining that the Japanese Yen is too weak and that the Euro currency is too strong. The Euro topped out on February 1, 2012 around the 1.371 level. Today, the Euro is trading down to the 1.336 level. Traders should expect the Euro to trade down to the 1.32 level where there will be some daily chart support. Should that support level fail to hold up there could be a lot more downside for the Euro.

    In the wacky world of currency trading the charts will be very important. Some ways of playing the currency markets are by using the currency shares. Here are a few currency shares that traders can trade and follow, they are the CurrencyShares British Pound Sterling Trust (NYSEARCA:FXB), CurrencyShares Euro Trust (NYSEARCA:FXE), CurrencyShares Japanese Yen Trust (NYSEARCA:FXY), and the CurrencyShares Australian Dollar Trust (NYSEARCA:FXA).


    Sentiment: Sell

106.85+0.85(+0.80%)8:00 PMEDT