MP FOREX ADVISORY

This week was a challenging one as the EUR/USD, on continued troubling economic news, pushed down to its lowest level since March 2006, only to reverse course in dramatic fashion, closing the week more than 400 pips higher than its weekly low of 1.2143.  It is possible that the EUR/USD may have posted its lowest level for some time, and we may be headed for several weeks of reacement or possibly even a new uptrend.  Such a reversal appears to be completely contrary to the fundamentals; however, this is what the technical picture looks like for the moment.  Next week will be critical in determining the near term picture for the EUR/USD.  If the 1.2143 level gives way, then we are likely to see a much more dramatic decline.  We will keep you posted.

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