Euro Looks Broken For Now (EURUSD), Ashraf Laidi Gives Update on BNN

EUR/USD (courtesy of FreeStockCharts)
Unless China steps in here, EUR/USD looks broken to me, at least for a while. It broke the uptrend line from June 2010, so it needs an injection from somewhere to get back on path. You can see the nasty sell off that occurred recently in the first chart and the near-term downtrend line to break for a relief rally. It could roll on down to test support in the descending channel.  On BNN yesterday, Ashraf Laidi, of Intermarket Strategy, had interesting views on the Euro.
"Only a very aggressive QE from the U.S. will do the trick for the Euro. Meaning, only something so aggressive easing policy of the Fed will be bad enough for the Dollar to come down and good enough for the Euro. We think the Fed is not going to be that aggressive and we think that the Euro is going to come back down."
"But the big trades we are talking about right now is, Euro/Dollar is going to test 1.37. If we do break below that, I think we are going to look at 1.30." (Ashraf Laidi on BNN)

Here is analysis on the ECB.
"The European Central Bank, or ECB, is most likely to reverse its recent rate hikes due to weak economic outlook and fading upside risks to price stability, Jennifer McKeown, a senior economist at Capital Economics, said." (

"If it remains a market crisis, the ECB may just give banks more liquidity but if it spreads to the real economy, they may even cut rates,” said Chris Scicluna, deputy head of economic research at Daiwa Capital Markets Europe in London." (Bloomberg)

EUR/USD showing trend-line from 6/2010 (

EUR/USD weekly chart (

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