EUR/USD & 1:10 rule

Discussion in 'Forex Trading' started by filter, Mar 25, 2010.

  1. filter

    filter Guest

    just some thought.
    EUR/USD is going to go higher from here.
    The new 1;10 rule is to create some buying for EUR, since it's heavily shorted.
    US wants China to raise its RMB value, and needs EU's support on this, which requires a higher Euro. Or the Europeans have no urge to do that.

    Looking inside US, universal health care is to stabilize the grass root people, if in the upcoming time there's a war against Iran/China. Look at what's happening at the far East, it's a writing on the wall.

    Not trying to read tea leaf here, but we can see the main theme is to export inflation to China and trying to kill its economy when the US is still able to do so. Once the dragon is too strong, just nothing can be done then.