The weekly average purchasing power of the Euro (EUR) priced in US Dollars (USD) declined last week to €1.15, its lowest level since November 2003. The Euro’s 14-day relative strength index (RSI) declined last week to a new all-time low of 12.29. This officially makes the Euro the most oversold it has ever been in history!
An RSI of below 20 means that an asset has become extremely oversold. This is only the 4th time since the Euro’s creation that its 14-day RSI has declined below 20. On the three previous occasions, the Euro’s 14-day RSI bottomed at an average weekly level of 14, 18.85, and 13.57, respectively. Although everybody on Wall Street expects the Euro to decline and USD to strengthen throughout 2015, NIA believes the Euro is likely to bottom sometime this week!
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