[ad_1]
Euro vs US Dollar Weekly Technical Analysis
The euro initially tried to rally during the course of the week, as it broke above the 1.09 level. After the jobs number though, we have seen a complete turnaround and it looks like the euro is going to continue to struggle. If we break down below the previous week low, then we could send this market down to the 1.05 level. All things being equal, this is a scenario where the market will continue to see a lot of noise, and with that being the case it’s likely that we will have to pay close attention to the next week as the liquidity comes back into the market, and traders come back from holiday. At this point, it certainly looks like we could be setting up for big move.
If we turn around a break above the top the candlestick, that is busting the top of an inverted hammer, which is one of my favorite signals. On the other hand, if we break down below the lows of the previous week, then it shows momentum coming back into the market, sending the euro much lower. Either way, we’re going to see a big move, and we are most certainly setting up for it heading into the end of the summer break.
As things stand right now, we are essentially at the bottom of the channel, so the channel of course is something that you need to pay attention to. Breaking down below the bottom of the channel of course is a very negative turn of events, but if we were to break above the top of the inverted hammer, then it could send this market looking all the way to the 1.12 level, which would be the top of the channel. Hang on, things are about to get interesting.
For a look at all of today’s economic events, check out our economic calendar.
[ad_2]
Source link
