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The EUR/USD pair fell during the week after having a nice parabolic move higher. The area above 1.30 is littered with a lot of noise; silly pullback certainly wasn't out of the question. By the end of the session on Friday, we did close slightly below the 1.30 level, but we think eventually we do find support somewhere near 1.2750. At that level, we think it is time to start buying the Euro again.
In a world of quantitative easing, the Dollar will continue to lose, and ironically enough the European Central Bank hasn't even done anything in order to ease its monetary policy, and bond yields are going down in the European Union. In other words, they've convinced the market they are going to do whatever it takes in order to save the Euro, and as such we think the lack of action out of Europe is actually starting to act as a catalyst for higher value in the Euro.