Make Kitco Your Homepage

The Euro bulls are back: targets to eye

Commentaries & Views


The euro has recently rebounded, and the pair is approaching resistance after swift Friday’s action. Will the bulls be strong enough to overcome it – and if so, where exactly can their efforts take them?

These were our Friday’s observations:

(…) The EUR/USD bears were stopped at the combination of the green support zone based on mid-Oct lows and the 61.8% Fibonacci retracement yesterday. A rebound followed, resulting in the exchange rate invalidating the earlier tiny breakdown below these supports.

This suggests further improvement, especially when we factor in the buy signals generated by the daily indicators.

Should it be the case and the pair extends gains from here, we’ll see at least an increase to the previously broken lower border of the declining grey trend channel in the coming week.

The situation indeed developed in line with the above, and EUR/USD has reached the first above-mentioned upside target.

Then, both the CCI and the Stochastic Oscillator generated their buy signals, increasing the likelihood of further improvement in the very near future – even if we see a small pullback from current levels first.

Nevertheless, if the bulls prove strong enough to break higher, the way to the upper border of the grey channel (or even recent peaks) may be open.

If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Forex Trading Alerts to also benefit from the trading action we describe – the moment it happens.  The full analysis includes more details about our current positions and levels to watch before deciding to open any new ones or where to close existing ones. Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too - it's free and if you don't like it, you can unsubscribe with just 2 clicks. If you sign up today, you'll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts.

Thank you.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.