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Saturday, January 23, 2010

LOOK OUT BELOW, EURO


This week saw an important breakdown we've been forecasting for a while...

Back on December 16, we noted the pan-European currency, the euro, had registered a textbook "1-2-3" trend change... and that the path of least resistance was DOWN.

Just after we wrote the piece, the euro suffered an incredible drop for a major currency... and reached a three-month low. It then staged a natural "relief rally" for about three weeks.

But in the past eight days, the euro registered another major technical breakdown. It violated the lows set on the last decline. We stand by our original thesis: Debt troubles for several of its members, plus an overvaluation, plus a major trend breakdown equals lower prices for the euro.

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