How does the euro get back on track?
The euro has recently recognized support located at $1.08 and therefore fueled the latest rally, keeping alive the chances of seeing further progress toward even higher areas.
With a move above the $1.12-1.125 level it will involve the break of the 61.8% point of the last selloff enabling a continuity of the recovery. Looking back, previous highs have been located around at $1.14-1.15, which is important short- and medium-term resistance.
If there are bearish attempts, we may see the euro find support at $1.10 or even the $1.085-1.080 area, and from there increases may go up to even higher levels.
Only with the break below $1.080 will these increases remain neglected and serve as a warning for continuity in a bear move back to $1.070-1.065, and even the previous lows of $ 1.05-1.045 and key short- and medium-term support levels. Then, from there the uptrend should finally be resumed as projected.
About the Author
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).