As I predicted in my previous post, the Euro has begun to move down against the Dollar. How low will it go? Drawing simple trend lines, I suggest that it will slip to $1.285, before settling back at $1.33. It could go lower than $1.28 for a number of reasons:
* The momentum of the downswing may carry it further than the Support Lines suggest, and bring the norm down as well;
* EU sceptics triumphed in the recent European Parliament elections, renewing doubt over the future of the Euro;
* Lack of progress towards lifitng inflation means the ECB will consider reducing EU bank rate and support the slide in the value of the Euro.
I also show 30 day and 50 day Moving Averages. Under Mark Shipman's (long-term investment) policy, we would not yet consider selling Euro. However, by the time his Sell trigger comes into effect (Short-term MA moving under the longer-term MA), the Euro will be bounding back.
* The momentum of the downswing may carry it further than the Support Lines suggest, and bring the norm down as well;
* EU sceptics triumphed in the recent European Parliament elections, renewing doubt over the future of the Euro;
* Lack of progress towards lifitng inflation means the ECB will consider reducing EU bank rate and support the slide in the value of the Euro.
I also show 30 day and 50 day Moving Averages. Under Mark Shipman's (long-term investment) policy, we would not yet consider selling Euro. However, by the time his Sell trigger comes into effect (Short-term MA moving under the longer-term MA), the Euro will be bounding back.
