Last week I was suspecting that EURO is making a base but new month does not bring any thing to cheer yet, as EURO was below its resistance of around 1.27 level.
From its recent high of 21st may, this week’s retracement was more that 61.8%. Comparing to its recent past this retracement was more. Last two day’s figures were not good and if EURO continues its lower highs and lower lows trend then it may cross last week’s lowest level. At past 1.22 has acted as a good support for EURO and if it drops below that then it may test its 2010 low at 1.187. On the other hand its long-term pattern also demands EURO to test these levels.
I think that EURO may not break this 1.22 level easily, though it will be clear in early to middle of the coming week. But if EURO again gets support around 1.22 range (or levels above that) then it has a chance to make a short-term positive pattern, which can take it towards 1.28 range in coming future. To trigger that pattern EURO needs to cross 1.26 level. Here I must say that EURO has the initial support at around 1.245 level.
Now it is very important to look whether EURO makes lower highs and lower lows or it gets the support around 1.22 level. I think initial days may give us that signal, unless it decides to move flat for couple of days in between 1.22 to1.26 range and then change its move in a big way.
[EURO is given against US dollar and it is
market price.] US
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