Euro making new significant lows, pinging off the US$1.28 level by a few pips, taking out the latest lows in force – and the US markets aren’t even open yet!
Now, I’ve said this before, but barring any significant policy action (forget Merkozy, target Bernanke at end of month if you’re bullish) things are looking rather dim. Target in the immediate future: 1.255. A cool 250 pips! Most everything that I wrote about in this post has played off perfectly. We had the quick few leaks above 1.30 after bouncing around the 1.29 level for a while, and now we’re making new lows below 1.288 less than three weeks after that post. Again, the 52-week lower Bollinger band is set to explode lower given the moving average fall that sets in next week, and wider given how aggressive price action is. For key price levels and why I’ll be looking for the Easter Bunny to bring me 1.19 if I don’t get it for valentines, read the post.
“But…. but… the prices are driven by fundamental news out of the eurozone, you just got damn lucky!”, I hear you cry. Fundamentals of what prevented us from doing this before this week? LTRO? If you think you understand it, please explain it to me. Fundamentals of what looked better three weeks ago? And what on earth is fundamentally new about Greece being insolvent, Italy not being able to pay into the 7% 10Y yield range, and Hungary defying Troika powers?
Nothing. Fundamentals of nothing. Eurozone just became the anvil free fall zone.