When the Euro rallies 9% in 3 months

When the EUR/USD was at 0.96, 0.97 and 0.98, market pundits acted as if the (euro) world was ending.

Now it has risen 9% within 3 months, which is a similar return to the S&P 500 over the same time and its much better than many bond ETF’s.

It proves to once again tune in to moments of intense pessimism coupled with extreme moves in the pendulum.

What is different in that recent trough was the percentage is stretched below its 200 week moving average……

and the price action in the following weeks is that it continued to make ‘higher highs’.

1.0790 is the next upcoming resistance.

December 13, 2022

by Rob Zdravevski

rob@karriasset.com.au