The Euro and Pound to Play ‘Catch-up’
EURO & BRITISH POUND WILL FOLLOW THE REST DOWNWARDS
I’ve watched with amusement starting last Monday as the prices for the Euro as well as the British Pound acted like all was well and the backdrop of news on Greece was of no importance whatsoever.
Where prices were expected to at least reflect some of the negativity that is the EU today on Monday, prices instead climbed.
However, these actions are only the window dressing for a scene resembling the time when George Soros forced the British Pound to devalue. Hundreds of millions were spent then, and, I’m convinced are being spent now, to give the public the illusion that ‘all is well’ with the currency.
Here’s what’s shown on the chart for the Euro and British Pound presently:
The Euro has been the most stubborn to accept the fact that it’s going down even more and has managed to have 3 higher closes over the past 5 days of trading. This is pushing the probability limit for a market in a strong declining trend and lower prices should be expected to follow.
The British Pound shown below also had a run of 3 higher closes in the last 5 days but, the last 2 days have been lower close days and the steam has run out of this forced upswing it appears.
These aren’t the only currencies in the World however and, further clues as to the future direction of currencies may be gleaned from two other important currencies; the Australian Dollar and the Canadian Dollar.
First, the Australian Dollar:
The Canadian Dollar has been even more honest having put in only a single higher daily close in the last 5 days time.
A serious continuation downwards has begun again for the Canadian Dollar, but, this currency won’t be alone.
In summary, we’ve been presented with a ‘show’, an illusion relative to the Euro and the British Pound over the last several days. This has been for Public Relations only and a smokescreen as the charts reveal.
Previously propped up by their sister currencies (like the Australian & Canadian Dollars), one-by-one those other currencies are leaving the Euro and British Pound behind by continuing on the only path they can take at the moment – DOWNWARDS.
When the Euro & GBP finally let go, they will have to play ‘catch-up’ with a highly probable fast move down. Watch for it. – George