An Update On The Euro With These Currency ETFs (FXE, EUO)

I previously wroteof a potential short in CurrencyShares Euro Trust (NYSE:FXE), the long Euro ETF (an investor could have also looked a short ETF such as UltraShort Euro ProShares (NYSE:EUO) or others).  I highlighted 3 price points – 121 and 118.79 as potential short points. Fortunately, in the face of the recent rally, neither price levels was reached. I also stated “On the upside, a close above 123.80-124 could signal the short-term rally still has some legs, possibly to the 23.6% fibonacci retracement level of 126.46. ”

(NYSE:FXE) is above the 126.46, closing today at 126.97.  If it can hold above 126.46, the next upside target would be $131, near the 38.2% retracement level (see below).   Currently, the short-term trend is up in the Euro but remains in a longer term downtrend, which is also validated by MarketClub’sweekly (bullish) and monthly (bearish) mixed signals.  I’m currently on the sidelines but could become a contrarian if (NYSE:FXE) approaches 131 but as always will take it one day at a time…

Written By Scott From Scott’s Investments

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