Euro Gets Kicked to the Curb (FXE)
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Currency traders dumped Euros today after the ECB cut rates by 250 basis points to .75 percent. Slightly higher key rates in Europe compared to the U.S. and Japan have supported the Euro, but as rates fall, traders increasingly view the Euro as the perfect short.
With a Greek exit from the EU likely at some point down the road, and with so many problems in the banking sector in Spain, there is a solid fundamental story for shorting the Euro. On a technical basis, traders see lower highs, lower lows, and a well defined trend lower.
Following the ECB decision, the spot rate for the EUR/USD dropped from near 1.25 and is currently trading below 1.24. Support is seen at 1.2286 and will be in focus in very short order.
CurrencyShares Euro Trust (NYSE: FXE), the ETF that tracks the spot rate between the EUR/USD is expect to open lower on Thursday, near 123.20.
With a Greek exit from the EU likely at some point down the road, and with so many problems in the banking sector in Spain, there is a solid fundamental story for shorting the Euro. On a technical basis, traders see lower highs, lower lows, and a well defined trend lower.
Following the ECB decision, the spot rate for the EUR/USD dropped from near 1.25 and is currently trading below 1.24. Support is seen at 1.2286 and will be in focus in very short order.
CurrencyShares Euro Trust (NYSE: FXE), the ETF that tracks the spot rate between the EUR/USD is expect to open lower on Thursday, near 123.20.
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