The EUR Is Unhinging
No it's not. But it makes for a great headline LOL. To be honest, I have been amazed at the resiliency of the euro. I thought for sure Greece would drive the EURUSD below 1.25 and the EURGBP below 0.80. But that thought is 2 years ago and we find both currency pairs well above those levels. And while the SNB's peg to the euro brought mass attention to the CHF, I did see one tweet that considered the other side of the trade.
The SNB has affectively propped up the EUR. If the SNB needs to devalue its currency, it will need to buy euros to do so. As such, the EUR has another agency willing to keep the currency intact. With the Chinese, the Swiss, and the Germans all with incentive to keep the single currency in existence and with the ammunition to do it, I don't expect we will see the day of reckoning that many of us anticipated when reality of Greece reverberated through the markets.
The EURGBP continues to remain bullish as price remains above 0.8750. The major area of resistance remains 0.8880. A return to this level will mark a 5th attempt. And I tell you, the odds of breakout above 0.8880 are very good. But until then, a EURGBP close above 0.8800 gives the pair a bullish bias. A close below 0.8750 changes the picture entirely.
- No Francs (The Economist)
- Another Reason to Buy Gold: Franc Losing Safety Status (CNBC)
- Will the SNB be successful in slowing the franc? (Daily Forex Trading Edge)
Updated chart below:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.