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Euro Breakout In Play? Gold Bulls Sure Hope So

Published 12/13/2019, 07:13 AM
Updated 07/09/2023, 06:31 AM
Euro Weekly Chart

The euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like gold have fared well, this has been a bit of a headwind because it means that the U.S. dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullish. As well, a Euro breakout would likely mean a weaker US Dollar. And this would send a positive message to precious metals and commodities bulls. Stay tuned!

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