The euro is coiling ever tighter all the time as some important data comes out this week such as ECB and BOE interest rate decisions, FOMC minutes fromt he U.S. Federal Reserve, the G-7 meeting this weekend, etc.
Any one of these events has the power to cause the breakout in either direction. In the mean time, euro and dollar bulls have a "tug of war" going on with each other. The data that comes out will probably determine the winner.
When the breakout occurs, it will likely be a sizable one. So this will either push the EUR/USD into higher highs than its ever had...or it will be the "real start" of a bonafide correction.
So keep a close watch on the Euro and Dollar data out there this week. It's going to be crucial.
Which one wins this tug of war? Euro or Dollar?
Sean Hyman
Currency Director
The Sovereign Society
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