CNBC’s Jim Cramer said on Wednesday that euro Depending on the analysis of DeCarly Trading Technician Carly Garner, the price may increase in the near future.
“Charts, as interpreted by Carly Garner, suggest that the euro is ready to rebound – if not now then very soon – and I wouldn’t be surprised if he is correct and it helps the entire stock market to take with it. ,” They said. ,
U.S. Dollar and euro reached parity on Tuesday, or the same value, for the first time in 20 years. While the US dollar index is rising, the euro area’s energy supply crisis and economic problems have put pressure on the value of the euro.
To interpret Garner’s analysis, Cramer first examined monthly charts of the euro-to-dollar exchange rate over the past two decades.
While the euro was trading at $1.60 in early 2008, it has been between $1.05 and $1.20 over the past ten years, Cramer said. He added that Garner believes the current sell-off is noteworthy, as the currency usually does not drop below $1.03.
“with so much [many] Traders are trying to push the euro down. … wouldn’t be surprised if there is one last check, to crush the remaining bulls before they fall down and the rally begins,” he said.
That means the euro could briefly touch 97 or 98 cents against the US dollar, according to Cramer.
“Once the narrative turns, Garner is predicting a sharp rally. Back in 2017, the euro fell below $1.05… but within a year it was back up [$1.25],” He added.
For more analysis, check out Cramer’s full explanation below.