Austerity will not be embraced "affectionately" by Portuguese, Greeks, Italians so the euro zone's problems will increase, Gartman said.
The point of this posting is not to confirm Gartman's or any other analyst's call on the Euro but rather the observation that austerity will not be embraced with Euro zone. Once a socialistic program is woven the standard of living within a society, it is not easily withdrawn. If the Euro is destined for further devaluation based on this logic, it is only a matter of time before traders reach the same conclusion with currencies of other over-extended nations facing similar problems.
My Euro commentary on May 18th suggested that a relief rally, if possibly, is not a turn. The breach of the monthly low on increasing volume and new lows in the REV(E) reflects what could be irrevocable loss of public confidence in the Euro.
Very little has changed to the technical picture since then.
Source: finance.yahoo.com
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