The EU is just “begging” to make the final break above the 1.50 handle. At the time of this writing, there have been 4 spike attempts to break higher. If the 15 min candle bodies can form, fill and close above 1.4990, it may finally happen. The DOW and S & P must also co-operate and a boost in the price of gold would help too.
FA’s coming out of the Eurozone (EZ) were net positive. But it’s still mainly Germany carrying the weight of the EZ. Greece, Italy and Ireland’s deficits are rising beyond the ECB’s mandates however. And as each of nations have no way of effectively devaluing their own currencies to stave off the effects the global financial crisis is inflicting upon their economies, the only other thing they can do is increase their debt load to try to stimulate economic internal activity. And the ECB is not at all happy with these member nations as a result. Should similar conditions spread to Spain, Portugal and the newer emerging member nations, the ECB may have a bit of a fiscal coup de tat on their hands as countries other than Germany and France struggle with their eroding economies GDP’s.
The Euro Bulls have bid the E/U pair up and further speculation and doubt regarding the status of the USD as regards to the world’s reserve currency lingers. As the markets begin to thin out coming into the US Thanksgiving Holiday, price action may become “whippy” as buyers and sellers find the bids and asks prices have minor gaps that can lead to tighter stops being triggered rapidly. I’ll be treading carefully the remainder of this week on all other major crosses as well as “raw speculation” may well become the theme of the big money syndicates who can move markets short term in ways just enough to potentially cause enough small trader “hurt”, then take the market were THEY wish.