Euro Slide Continues
Fundamentals
The terrorist attacks in France come on the heels of less than inspiring growth rates in the Eurozone for the 3rd quarter. GDP growth for the Eurozone slowed to just 0.3% in the 3rd quarter of this year. Surprisingly, the weakest growth came not from Greece but from Finland, with a contraction of 0.6%. Greece did contribute to the low growth rate, however, with a negative growth rate of 0.5%. More positive news came from Spain, with a 0.8% positive growth rate, as well as France returning to positive growth, with an increase of 0.3%. German growth was expected to slow due to the scandals at Volkswagen as well as the Chinese economic slowdown reducing demand for German imports. German growth did drop from 0.4% to 0.3%, not as severe of a contraction as some economists were predicting.
Technical Notes? -? View Today’s Chart
Turning to the three-month continuation chart for the Euro, all the signs show a very bearish trend for the Euro. The series of lower highs and lower lows is continuing, with the trend pointing to the Euro trading at parity with the U.S. Dollar. The slope of the 20-day Simple Moving Average is a very steep downward slope, showing the rapid decline of the Euro in recent trading. 1.07 is near-term support, which has been tested several times recently. Resistance can be found at the 1.15 level. Finally, 14-day RSI shows oversold at 22.81.
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