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Euro Holds Monthly Downtrend

Published 04/04/2014, 11:45 AM
Updated 07/09/2023, 06:31 AM
This Great Graphic is the monthly bar chart for the euro. Constructed on Bloomberg, it shows that the euro has been turned back from a monthly trend line drawn off the 2008 record high and the 2011 high near $1.50.
The Euro
The euro's demise has been long foretold. It was the ECB's reluctance to ease in early March that broke the dollar out of its five-cent/five-month trading range between $1.33 and $1.38 and set up the test on the trend line.
With the backing up of US yields and the continued dovish push by Draghi, as he ostensibly tries to build a coalition in favor of taking unconventional measures, the euro has returned to its former range. Nearby support for the euro is pegged in the $1.3640-80. A break would could spur a move toward $1.35, but if that trend line does indeed remain intact, over the longer-term, the euro would be headed back toward $1.20.

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