Recession is about to hit Europe and will be long-lasting
Euro Exchange Rate Technical Analysis
The euro may be gaining a bit this morning, but on our charts (that show only one price taken at 5-6 am ET), the US dollar exchange rate corrective move up has resumed. Evidently the perception that the US dollar should be punished because the US started this mess is not the main sentiment. Foreign Exchange Traders are not concerned (so far) about a giant increase in the budget deficit, either, or that the US is headed into a Great Depression. Instead, the perception is back that it will be worse elsewhere, specifically Europe.
This is a version of the FIFO argument.
UBS, for one, recommends the following foreign exchange trade; Sell Euros Buy US dollars, according to Bloomberg, because recession is about to hit Europe and will be long-lasting.
The sell point is 1.4655 with a stop at 1.4890 and a target of $1.4250.
Buy for Now