Why is the dollar weakening while the Euro is getting stronger? Aren't we in this financial crisis together? Yes, but the US is getting the blame - rightfully. So you would expect international investors to distrust American financial institutions while moving their money elsewhere, like in the Euro zone.
Let's do a quick recap on the recent history of the EURUSD: in December a strong rally brought the pair to almost 1.48 (US Dollars for a Euro). Not long and it came crashing down again and fell to a bottom at 1.2450, then followed 1.37 in March and now we are back ober 1.36. Above the current level there is the resistance from the last major high. Reasons stated for volatility is the Federal Reserve with a policy of printing money in order to buy government bonds. The trend is expected to continue because - like during the great depression - the US has an interest in devaluing the currency in order to pay back debt, most prominently to the Chinese.
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