The Euro continues to put serious pressure on the 1.59 zone and managed to set a fresh record high at 1.5915 on the previous week. The greenback reversed sharply after earlier knee jerk gains on G7′s change of language. The weekend’s gap has been filled fast as the Euro managed to recover, bringing resistance levels into the 1.58 zone back on focus. The weekend’s decline to 1.5670 confirms the medium term support formed by the upward trendline seen on the chart below. While the mentioned trendline remains intact, we will focus on uncharted areas past 1.59 and the key psychological barrier at 1.6. Now that the G7 couldn’t help the dollar much, the upside is more favored than before. Key support is formed by the upward trendline now around the 1.5700 mark, backed by the previous pullback lows and the fib levels at 1.5550 then 1.5340. Resistance is formed into the 1.5900-1.5915 zone first then 1.6000. The current consolidation below 1.59 which has been started a few days ago suggests that the longer term uptrend is very strong and the triple top will most likely break soon. I personally expect a test of 1.6 within the next 5 days.
Trading ideas:
Long positions started from the 1.5700-1.5750 range with stops below 1.5600 may target 1.5900 on first phase then 1.6080 later on a potential break of 1.5900.
EURUSD daily chart:
