Euro vs US Dollar Weekly Technical Analysis
The Euro has fallen a bit during the trading week to break below the 1.07 level. At this point, the Euro looks as if it is ready to continue falling, especially as it had been overdone for so long. This has been a vicious bear market rally, and I think that’s what it’s going to end up being remembered as in the long run. The shooting star from the previous week forms right at the 50% Fibonacci level, so it does make a certain amount of sense that we would see that come into the picture. Ultimately, I do think that we’ve got a market that has a lot of noise just above but given enough time we will have to determine where we are going to go longer-term. I do think we are about to make a big move.
More likely than not, the market is going to continue to be a lot of volatility just waiting to happen, but as we continue to see a lot of questions asked as where the economy on a global scale is going, that does tend to favor the US dollar of the longer-term as uncertainty works in its favor. The US dollar is considered to be a safe haven, and I think there will be a lot of that need coming forward. After all, there are plenty of things to worry about right now, so I think if we break down below the 1.05 level, the bottom falls out in this pair. Short-term rallies more likely than not continue to be sold into unless we break above the 1.10 level on a weekly close.
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