The Euro may fall

The Euro currency is in a long term downtrend although has been holding up lately. I see a "head and shoulders" pattern on the Euro chart. The H&S pattern is in the context of a long term downtrend so I expect the pattern to complete itself by breaking through the "neckline" and continuing the downward trend of the Euro. When the Euro make a sharp break it makes the US Dollar strong and that is usually bad for the US stock markets. (A strong dollar buys more stocks, so it takes less dollars. And a strong dollar inhibits US exports).
The US stock indexes have been getting choppy lately. They often get choppy in a prelude to a down move. We'll have to wait and see......
More government debt problems probably on the way. We will get our turn someday!

Here is the chart:

Control risk,
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