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Ticker Sense is managed by Kevin Pleines, an equity market analyst at Birinyi Associates. Posts and articles are added by Kevin and the other analysts and traders at Birinyi Associates. Birinyi research and commentary is regularly featured by the New York Times, Wall Street Journal, Financial... More
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  • Euro Trading Range - Nearing Oversold Level 0 comments
    Sep 8, 2010 11:22 AM | about stocks: DRR, EEN, FXE, ULE, EUO

     The Euro's 4.4% decline since August 6th has the currency trading down near oversold levels.  Currently at 1.2690, the bottom of the trading range is 1.2645.  In the past the 50-day average has been a good indicator of trend.  On 12/10/09 the Euro broke down to oversold levels; the initial decline was followed by a change in trend which lasted through the first half of the year.  The overbought condition on 7/5/10 was followed by continuation of the rally.

    Currently the 50-day average is in an uptrend and traditional overbought and oversold analysis says that oversold in an uptrend equals a buying opportunity.  As shown below, on 12/10/09 that analysis could not have been more wrong.  Wait to see if the trend changes before making any decision on the Euro's direction.

    Euro trading range 



    Disclosure: no positions

    Stocks: DRR, EEN, FXE, ULE, EUO
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