Has the Euro Gone Too Far?

We ended 2009 with the overriding consensus that the dollar was going to be under pressure and keep moving lower against the euro. Well guess what, the euro proved to be even weaker than the US dollar as it moved to levels not seen since May of 2009.

So what happened? Was conventional thinking wrong, or did the market get it right? We may be at a tipping point where conventional thinking could well be wrong again.

In my new video I share with you what I see in the euro/dollar cross right now.

As always our videos are free to watch and there are no registration requirements. I would really like to hear back from you, with regards to your thoughts on this cross-rate. Your comments are welcome on our blog.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

8 thoughts on “Has the Euro Gone Too Far?

  1. It looks like fundamentals are in your favor. Greece bonds are the thing these days. High interest is definitely attractive and Greeces' desire to pay back their debt will improve the EU.

  2. The Euro is doomed. The outcome of the summoning up of bankers and regulators by EU about sovereign CDS will be political statements as it calls the wrong folks ... they should employ Goldman as regulator not
    layback style EU officials. It happens so that this meeting announced with fanfare takes place Mar 5th a view hours before Merkel meets Papandreou. Papandreou will promise he'll save a few bucks and Merkel will say good boy, so you don't need a bailout.
    That will open the next round against Euro, and it is only fair.
    Italy is a black hole perhaps the worst of all in terms of debt ...Spain has 20% unemployment and a house bubble of the size of Ca and Fl combined...Austria sits of billions of non performing loans to Eastern Europe and russian oligarchs... no we don't need Charts nor Elliot waves we just need bond spreads. The Euro is doomed.

  3. Great technical analysis!

    Just think back over the last two years. We've gone from Pound bashing, to US dollar bashing, to now Euro bashing. Each time a currency was bashed in the news, it made a bottom, albeit medium term, eg the pound.

  4. Hi Adam!

    I agree that euro is starting to come to a very important level of retracement. But what I would like to ask you is if a coutertrend may start before mid March, that is when you think Gold can do another minimum or euro just will recover till 1,40 euros at the same time that gold wiill start another field of energy to go to another maximum.

    All the Best,

    From Portugal

    Jose Louro

    1. Jose,

      Thank you for your feedback.

      I would like to see the gold market create an energy field that can propel it higher, and to new highs next year. At the present time the trend in gold is higher but I suspect we will see more of a two-way market in the interim.

      In regards to the euro, the main trend is down, but we could see a counter trend rally back to the 140 level.

      All the best,

  5. The Oracles went to far.

    As they fall, will they take gold with them? Some of your peers have pushed things to far and presented themselves as a threat to the United States of America.

    The attack employs simple propaganda and marketing techniques that are fairly easy to expose. They use fear and speculation under the guise of 'investor advocacy' in the financial news to sway the markets. With America being attacked by global investors, all bets are off. I think the gold market where they're hiding their money is likely to become very hostile. I remember Shock and Awe.

    As Americans become more aware, and thus concerned about this attack, I think the markets will invert rather quickly. When America is attacked, Americans buy Bonds. I’m sure under the circumstances other nations will follow a very similar pattern. Between Tea Parties, Cognitive Infiltration and a few Black Swans, this should be an exciting year in the market.

    If you’re not in control of your emotions, chances are someone else is. Most of the time the other person doesn’t even know it. Sometimes they do.

    The smart investor will put their money where they want to see recovery, advancement, more jobs, and better economies.

      1. Rajit,

        Thank you for your feedback.

        I hope the language I used in the video was as clear as it was to many of our other members. I am not sure how much clearer I can make statements on the video.

        All the best,

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