Celcius

EUR / USD Parked in Neutral and Going Nowhere

IMO we are in a monetary deflationary stage of the crisis with more capital destruction than the QE capital inflows. This should keep the EUR/USD range bound if the US economy gracefully bottoms. But once the bottom is found and monetary base rapidly expands due to QE lookout inflation or hyperinflation over the long-term.

A fear of US economic collapse due to violent economic events, bank failures, could reach a tipping point that sends everyone rushing out of the USD to other asset classes like gold, euro's, commodities, etc...

Either way violent of graceful I think investors will leave the dollar over the long-term.

A Strong U.S. Dollar Isn't in Anyone's Best Interest

K9 - You ignore the fact that more EU trade is done within the EU borders than between the EU and US. I anticipate that the US's casino capitalism will cause the EU to decouple from the US and focus on internal EU economic development and trade expansion.

This is the strategic tipping point where US imperialism is declining, and a multi-polar world is developing. IMO we are in for a long decline that will accelerate as our reserve currency status declines.