Charts suggest euro could stage 'rapid rally' and lift market, says Jim Cramer

Charts suggest euro could stage 'rapid rally' and lift market, says Jim Cramer

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CNBC's Jim Cramer said Wednesday that the euro could appreciate in the near term, citing analysis from DeCarley Trading tech Carley Garner.

"Charts interpreted by Carley Garner suggest the euro is on the verge of rallying - if not now, then very soon," the Mad Money host said.

CNBC's Jim Cramer said Wednesday that the euro could appreciate in the near term, citing analysis from DeCarley Trading tech Carley Garner.

"The charts interpreted by Carley Garner suggest the euro is on the verge of rebounding - if not now, then very soon - and I wouldn't be surprised if she's right and that helps lift the overall stock market with it. ." said.

The US dollar and euro hit parity or the same value for the first time in 20 years on Tuesday. As the US dollar index rises, the Eurozone energy supply crisis and economic difficulties have weighed on the value of the euro.

To explain Garner's analysis, Cramer first looked at the monthly chart of the euro-dollar exchange rate for the past two decades.

While the euro traded at $1.60 at the start of 2008, it has hovered between $1.05 and $1.20 for most of the past decade, Cramer said. He added that Garner thinks the current selloff is notable as the currency typically does not drop below $1.03.

"With so many traders trying to drive the Euro down. … It wouldn't be surprised if there was one last probe to crush the remaining bulls before the thing can get down and start harvesting, ”he said.

This means that the euro could briefly reach 97 or 98 cents against the US dollar, according to Cramer.

"Once the story changes, Garner expects a rapid rally. In 2017, the euro fell below $ 1.05 ... but within a year it was back above [$ 1.25]," she added.

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