Currency war between Euro and Dollar

Investors forget very fast.

Do you remember? It is only some weeks, there the euro should stand before the collapse, our currency system should break and overthrow the PIIGS states to us in the downfall. Many analysts and comments saw the euro up to the parity falling to the US dollar. It came quite differently! And what do the analysts and comments say today? If sweeps march! Now the problems of the USA are in the foreground all at once. Their high indebtedness and the twin’s deficits will overthrow the USA in the ruin. A currency war and a devaluation race should rave supposedly. Nonsense! Time for a sober location regulation.

Euro – US dollar in the day chart

In comparison to the beginning of the year the euro takes down compared with the US dollar of only about 2.5 more weakly. On the 07th of June, 2010 – with 1.1877 – was one more deficit of about 17 0ewesen. At that time – exactly in the low-pressure area – many investors have capitulated and have fled in panic from the euro. Today the US dollar should stand again before his end. Technically looked the euro up to now has not carried out any more and no less than a 3 wavy upward correction compared with the US dollar. Besides, the level of the technical maximum correction has been reached. Now at least a bigger correction of the euro is to be expected – to all calls around a supposed dollar crisis in spite of – again.

Euro – US dollar in the hour chart

At short notice the rapid upward trend of the euro is nicely to be recognised. Besides, many technical indicators have not confirmed the latest high more than 1.40 USD any more. The situation is oversold, the sentiment is too sceptical of dollar and the problems of the euro are not solved long ago. A correction lies in the air.

Result

Do not take part in this senseless play. There has always been the supposed currency turbulence in this form. Typically the majority of the investors always wants to operate in the wrong direction. And where are then the supposed speculators who should have earned a property with her attacks and the decay of the euro? Currencies always stick together in relation: If one currency is weak, is other strongly and vice versa. As the majority of the investors lies so often, besides, on the wrong side of the market and can be stuck on with pleasure from the immediate panic. 2010 and the movement in the euro-USD relation is for it a nice example. The euro takes down – in comparison to the beginning of the year – nearly consistently to the US dollar. By balance has not happened a lot – a lot of shouting around Nothing!

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