Euro: Upward trend set to continue

The euro now seems to be trying to do things right. At least the performance of the past weeks allows this conclusion. Even the most recent trading days have not brought a break in this view, as the view on the chart shows. But the European leading currency has not yet overcome, because a real breakout has not yet taken place! Do not forget this aspect. Nevertheless, we are sticking to our very positive outlook for the continental currency. The chart shows our reading in this respect.

Outlook for the euro:

The missing closing price above the 1.00 retracement (1.1415 $) is a slightly negative sign for the following development. Consequently, a slight correction can be expected for the following trading week. Of course, there is no significant potential for this movement, but its arm may well reach the 0.62 support line at $1,1269. However, we do not expect the euro to slide that much. The correction takes its course with a fall below the 0.24 retracement at $ 1,1357 and may well have a higher momentum.

In the further course, wave (iii) will then let the Euro rise strongly again. The ideal-typical target of this impulse wave is the 1.62 retracement (1.1561 $) at a relatively large distance. However, this aspect does not represent a reason for gloom. The performance of recent weeks shows what the euro is capable of. Greater dangers would only come to the fore when the 0.62 retracement ($1,1269) is breached. However, we do not expect this step. If this is the case, the currency pair falls immediately to the large and existential 0.50 support at 1.1182 $.

Conclusion

The upward trend of the euro, which has been going on for about four weeks, will continue. At the moment there is a small correction on the agenda, so we advise against a new positioning. Hedge your positions on the 0.62 retracement at $1,1269.

Be the first to comment

Leave a Reply

Your email address will not be published.


*