Must-See Charts: Euro's Rise May Be Halted
NEW YORK (TheStreet) -- The March Eurocurrency futures have seen quite a rise over the past several weeks.
The market is now in a clearly defined uptrend on the daily and weekly timeframes. The monthly chart is threatening an official turn to the upside as well. Perhaps the situation in the eurozone has improved -- perhaps it really has not and the markets have simply done a great job of "sweeping it under the rug" for the time being.
Either way, the market is always right. Although I am skeptical of the currency's strong rise in recent weeks, I am of the opinion that it is quite likely the euro has simply moved up into a higher trading range and will likely spend some time going sideways.
The European Central Bank will be meeting tomorrow to discuss the credit crisis as well as concerns over the rise in the shared currency. It is widely expected that rates will remain at current levels and no material changes to ongoing policy will be discussed tomorrow. The continuing stream of eurozone data, as well as headline risk, will likely dictate market direction for the foreseeable future. I feel chances are good the euro finds some equilibrium between the 130 and 140 areas.
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