Euro bears will be happy at last!

EUR/USD weekly futures chart
EUR/USD weekly futures chart

Following on from my recent post about the US dollar, in which I suggested that perhaps the second half of the year would be better for the greenback, in the last few days this has certainly been the case. And today’s price action on the DXY seems to bear this out.

From a technical perspective the 80 level appears to be holding firm as the USD index moves towards a test of the 81 region and any move through here should see the 81.53 high of January tested and regained in due course.

This resurgence in the US dollar is now starting to be reflected in some of the majors, not least of all the eurodollar and for a better perspective of this the weekly chart of the eur/usd tells its own story.

As we can see the various levels of support and resistance, and their relative strength or otherwise, are clearly marked. To the upside, the strongest resistance is now in place immediately above the 1.40 price point. Below, and now about to be tested, is a deep platform of support between 1.34 and 1.3430. If this is breached then the next level comes into play at 1.3220, followed by 1.30, and ultimately 1.2790. Finally euro bears now have something to celebrate, helped by the change in sentiment towards the US dollar, and should the 1.34 level break then expect to see further downside pressure on the pair.

By Anna Coulling

About Anna 1030 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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