Euro struggles mightily with the $1.34 level

The euro struggled mightily with the $1.34 level of technical resistance this past week. After the Fed FOMC announcement, quite a number of people misguidely acted as if a couple of Fed rate cuts were in the offing in the near term. As people came back to the reality of the Fed standing pat on rates, the euro retreated a bit, closing Friday at the $1.3334 level.

I wouldn't be surprise if speculators managed to push the euro up into the $1.34 to $1.35 range in the next few weeks whenever there is any bad news to focus on, but it is just as likely that they will trade it back down under $1.30 as soon as people grasp the truth that the Fed is very unlikely to cut rates over the next six months.

In short, the dollar is not "plunging."

-- Jack Krupansky