CNBC’s Jim Cramer on Wednesday said that the euro could appreciate in value in the near future, pointing to an analysis from DeCarley Trading technician Carley Garner.
“The charts, as interpreted by Carley Garner, suggest that the euro’s ready to rebound — if not now then very soon — and I wouldn’t be surprised if she’s right and it helps take the whole stock market up with it,” he said.
The U.S. dollar and euro on Tuesday reached parity, for the first time in 20 years. While the U.S. dollar index has been surging, the euro zone’s energy supply crisis and economic problems have weighed down on the value of the euro.
To explain Garner’s analysis, Cramer first examined the monthly chart of the euro-to-dollar exchange rate over the last two decades.
While the euro was trading at $1.60 in early 2008, it has stayed between $1.05 and $1.20 for most of the last ten years, Cramer said. He added that Garner believes the current sell-off is noteworthy, since the currency typically doesn’t dip below $1.03.