ECB President’s press conference boosts euro, sending Euro Trust ETF to its highest level since early May. It didn’t seem like much of a pep talk.  In fact, the January 10 press conference, held by European Central Bank president Mario Draghi, to explain the ECB’s decision to hold its benchmark interest rate at 0.75 percent, included his admission that “the economic weakness in the euro area is expected to extend into 2013.”  On the other hand, Dragjhi’s assurance that the ECB’s efforts to strengthen bank balance sheets and implement market reforms would improve the outlook for growth later in the year, sent the euro skyrocketing.  By the close of the trading session, the CurrencyShares Euro Trust ETF (NYSEARCA:FXE) jumped 1.43 percent to 131.50. The chart below depicts the trading activity in the CurrencyShares Euro Trust ETF (NYSEARCA:FXE) during the past 180 days (Chart courtesy of  Stockcharts.com ). As we pointed out on December 9 , an inverse head-and-shoulders pattern was beginning to form on the FXE chart, based on activity since November 19.  Since that time, the euro experienced some setbacks as the dollar was strengthened when the fiscal cliff deal was (partially) resolved and again after the  minutes from the December 11-12 meeting of the Federal Reserve’s Federal Open Market Committee  were released on January 3, raising concerns that quantitative easing could end by mid-2013. The January 10 Draghi press conference sent FXE to a level where it has not been since the first week of May and FXE has been able to maintain its advance.  In fact, a look at the 365-day chart for FXE depicts a giant, inverse head-and-shoulders pattern, based on activity since May 1.  The next resistance level for FXE appears to be its February 24 closing price of 134.07.  As the yen continues to experience debasement and the Fed continues with quantitative easing, we could see FXE break above 134 relatively soon.  Gold As a Weapon in the Currency War Currency ETF Update:  The following is a summary of how currency indices and ETFs performed from the close on Friday, January 4 until the close on Friday, January 11: $US Dollar Index:  -1.16 % PowerShares DB US Dollar Index Bullish Fund ETF (NYSEARCA:UUP):  -1.13% , This ETF reflects US dollar performance as indicated by the Deutsche Bank Long US Dollar Index (USDX) Futures Index (DB Long USD Futures Index).  The USDX Index invests solely in Long USDX Futures Contracts, and compares the performance of the US dollar against the Japanese Yen, the Euro, the Swiss Franc, the British Pound, the Canadian Dollar, and the Swedish Krona. Euro Dollar Index-Philadelphia: EUR: $133.42  +2.08% CurrencyShares Euro Trust ETF (NYSEARCA:FXE):  +1.96% , This ETF is designed to track the performance of the Euro dollar.  CurrencyShares Euro Trust ETF (NYSEARCA:FXE) is a trust denominated in Euro dollars, and the depository bank is JP Morgan Chase Bank, N.A. London Branch. ProShares UltraShort Euro ETF (NYSEARCA:EUO):  -3.82% , This ETF tracks the 2X inverse daily performance of the Euro dollar in US dollar prices.  The ProShares UltraShort Euro ETF (NYSEARCA:EUO) relies on the EUR/USD cross rate as determined by Reuters by 4 PM EST to determine the price of the Euro in US dollars. Australian Dollar Index-Philadelphia: AUD: $105.42   +0.62% CurrencyShares Australian Dollar Trust ETF (NYSEARCA:FXA):  +0.50% , This ETF is designed to track the performance of the Australian dollar.  The CurrencyShares Australian Dollar Trust ETF (NYSEARCA:FXA) is a trust denominated in Australian dollars, and the depository bank is JP Morgan Chase Bank, N.A. London Branch. CurrencyShares Swiss Franc Trust ETF (NYSEARCA:FXF)  +1.11% This ETF is designed to track the performance of the Swiss Franc.  The Swiss franc is the national currency of Switzerland and Liechtenstein and the currency of the accounts of the Swiss National Bank, the central bank of Switzerland. The Swiss franc is the sixth-most-traded currency in the world, accounting for 6.4% of global foreign exchange transactions. The USD/Swiss franc pair is the fifth-most-traded currency pair. Japanese Yen Index–Philadelphia: JPY:  $112.14  -1.14%   CurrencyShares Japanese Yen Trust ETF (NYSEARCA:FXY):  -1.19% , This ETF is designed to track the performance of the Japanese Yen.  The CurrencyShares Japanese Yen Trust ETF (NYSEARCA:FXY) is a trust denominated in Japanese Yen, and the depository bank is JP Morgan Chase Bank, N.A. London Branch. Bottom Line:  Mario Draghi’s January 10 press conference has apparently given the euro the boost it needed to make a sustained advance.  As long as both Japan and the United States continue to weaken their currencies, the euro can be expected to benefit.    EUR/JPY Gains as Prime Minister Asks BoJ to Tolerate Inflation Get Wall Street Sector Selectors Free Newsletter for Breaking News About Currency ETFs Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.