We have highlighted the EC- several times over the last few years suggesting a move to parity or lower vs. the USD$-
Although we’ve seen the Euro stabilize over the last several weeks, it appears to be setting up a resumption of its primary macro trend lower as previously discussed at several junctures.
We see this currency as broken technically and destabilized at the moment-
Traders/PM’s are advised to watch EC carefully and take into consideration a lower EC/higher USD$-into their capital allocation plans.
Using FXE as our EC- proxy- The schematic below shows EC- moving lower to 104/100(par) vs. USD$ into early -mid November-
Technical Analysis Specialist-