- Euro is still headed lower, in short run expects Euro consolidation
- It's not really bailing out Greece, it's a disguised bank bailout. (IMF money -> Greece -> Banks)
- 70% of Greek bonds owned by foreign investors
- Pain of servicing debt will be so great that foreign investors will choose debt restructuring
- Over time Greece will want weaker Euro to stimulate exports (foreign demand)
- Sees EUR/USD at 1.25 in short term and ultimately at 1.18-1.19
See recent posts on EUR/USD. From my chart, before EUR/USD can hit Chandler's target of 1.18-1.19, it must successfully break through 1.246 using the late 2008/early 2009 lows.
EUR/USD (Euro vs. US Dollar) Courtesy of FreeStockCharts.com