Take a look at the interesting chart below. I have drawn a trend line from 2001 (near the start of the Euro's creation). If price dropped all the way down to the trend line in this month it would go down to the 1.2350 area.
As each month goes on, that trend line will grow higher. In six months time, that trend line will be at about 1.2550.
It's the type of trend line which should hold like no other trend line. It's the daddy of all trend lines!
I just thought that was an interesting thought.
Member
It's interesting you mention this trend line because the Deutsche bank has apparently come out and said, “EUR/USD could slide into low 1.3000″ over next few months on the back of diminishing risk appetite.Originally Posted by theMoney
That's well above that major trend line which you have drawn there.
If the EUR/USD were to fall to the low 1.30's, to keep the EUR/CHF above the 1.20 level would mean the USD/CHF would have to strengthen drastically.
Member
Finally some closure to this EURO bond speculation. Merkel has said that there will be NO Euro bonds.
He also has said that the Euro must be kept stable. So there you have it; the ECB want the Euro to be stable; with none of these massive swings we've been seeing over the past few years.
He also said Europe is benefiting from German growth.... The most obvious comment of the year there folks...!
Junior Member
Apparently Greece are running out of money and will need to tap into their emergency fund. This just all stinks of a lead up to a default to me. Even the European Central Bank minister Stark has said that a bailout is just a way of 'buying time', not fixing the problem.
And now we have Greek workers going on strike on the 6th October, striking against the austerity measures in place there.
I seriously don't get how these people can leach money off of Europe and cry when there is austerity. They are in debt to Europe; NOBODY said it would be a gravy train or an easy ride! They just need to stop crying and get to the grind like the countless other countries in the world who are grinding every single day. That country needs a bucket of ice cold water thrown over their head to wake them up to the fact that they got themselves into this mess and it's going to be painful for everybody to get out.
Sorry for the rant; I'm just annoyed!
Junior Member
ECOFIN meetings today peoples! How exciting!
Junior Member
A 'gap'. I'm willing to have a punt on this one that it will close the gap in the Asian session. The Buy is on!
Take profit 1.3785
Junior Member
I should do a little more analysis before I place the trade. See how price has gapped down below that trend line. I would wait until it breaks back above it with an hourly close to place that long to 'close the imaginary gap'
Take a look at my chart below.
Junior Member
A break of 1.3710 and a close above that on the hourly will bring on a test of 1.3937. I think this is near the bottom of a swing. Definitely a good buy opportunity; potentially getting some cheap Euros.
Stochastic is clearly oversold and is turning up.
Junior Member
Look at my previous chart again, look at those 4 hourly candles. Price is stalling, price has lost downside momentum; I'd be gob smacked if this didn't break 1.3710.
Member
It's interesting that the ECB last week reitterated over a 5 minute period that there would not be a Euro bond. But let's get real, look at history; it's not possible to have a long term stable economic union without a unified bond.
Germany and France have said they don't want a bond, and that's understandable. With the current countries in the Euro there is likely not going to be a Euro bond, however, I believe the Eurozone will get shaken up and some countries will drop out of the Euro, and it's at that time there will be a Euro bond. France and Germany have to agree as they're the driving force in Europe.
You heard it here first.
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