Quick EUR, USD Thoughts and Thursday Links

“Before the effect one believes in different causes than one does after the effect.” – Friedrich Nietzsche

Good evening. Let’s take a quick look at some interesting euro, dollar and silver charts.

EURUSD is little changed since yesterday but what’s important is that it trades higher for 3rd day in a row and notable short-term resistance zone is currently being tested near the 61.8% of last down leg from 1.3745 to 1.3430

When zooming in the charts, looking at the hourly one – we notice the steady recovery in the last 3 days.

One may say that it’s quite remarkable how the EURUSD is getting stronger while the Portugal bond yield hits yet another record high. Is the market ignoring that? No. That’s what holds the EUR here, else it would gain (a lot) more. Both the EUR and USD and weak and it feels like there’s a ping-pong game of bad news from one to another. So if you really want to bet on dollar’s weakness – look at some other pair. Same if you expect the EUR to decline.

Does the Dollar Index above look bad? Ok – now let’s see the Euro Index

The last two charts speak for themselves.

“You’re thinking of Europe as Germany and France. I don’t. I think that’s old Europe.” – Donald Rumsfeld

The most interesting performer today is Silver which breached higher, providing some fresh buying opportunity – as highlighted in my last multi-setups article.

And here are some good readings for today.

Charting the Cross Market Inflation Fallout from QE2 Stimulus

Europe Locks Out S&P, As Rating Agency Converts All Key European Ratings To “Unsolicited”

FX Concepts’ John Taylor On The Equity Endgame: “Extension Of Equity And Economic Strength Beyond June Unlikely”

The Political Failure of Keynesian Economics

New Hacking Tools Pose Bigger Threats to Wi-Fi Users

Obama gets shopped -I take the First! (17 photos)

Enjoy

More in Analysis and forecasts, Links »
Post tags: Ben Bernanke, Dollar, Euro-zone crisis, EURUSD, funny pictures, John Taylor, Keynesian economics, music, recommended articles, Silver