The Euro is 56% of the Dollar Index and therefore its movements will directly impact the above Dollar index chart. The Euro is in the timing band for a top and could be ready to begin moving lower towards an eventual ICL. The $1.36 top set two weeks ago is potentially the IC top and if so, we should see a breakdown of the 13 week up trend line occur within the next few weeks. But that might be a little premature, the Euro is well correlated with risk markets and therefore I doubt the move has ended. The Euro Daily Cycle is showing that it’s ready to form a DCL and move higher over at least 3-7 sessions. That bounce should be good for a move back to at least $1.35 which would set the scene for a potential double top near $1.36.
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