 | |  | | KeymanFX-启明外汇:首席分析师观点
The EUR/USD continued its weak downtrend, which we believe is a consolidation of the more major uptrend, on Friday and our cycles say that it will probably continue into Wednesday before the downward pressure reverses. We have not been expecting this decline to be very powerful but the move on Friday was a bit disconcerting to our picture. First, we had expected the 1.3100 area to hold and we expected to see some euro strength toward the end of the day. Basically that did not happen as the euro looked weak all day.
A bit further afield, but more worrisome is the action in the gold market and the silver market as they both suffered powerful down days. These markets are often quite tightly related to the EUR/USD market so their weakness bodes ill for our longer-term strong euro outlook. This is especially true with silver, which is sometimes a leader because it can be so volatile. Both gold and silver argue for a cyclical low on Wednesday just like the EUR/USD but if it is much lower than current levels, it will imply strongly that the EUR/USD will not see a new high in mid-January.
Before we get too excited, however, we should note that oil closed up today - something that usually correlates with a weak dollar - maybe it is just to near Christmas and there is no liquidity. |  |  |  |  |
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