The dollar is ready to take over the euro (FXEURUSD), what are the levels to monitor?
As we wrote last week (Selling euro against dollar could be the winning strategy in the short term) the single European currency could lose ground against the dollar. With this in mind, the closure of June and next week will be fundamental to understand what will happen.
Daily time frame analysis
As noted in the previous weeks, the breakdown of the trading range indicated by the green rectangle detonated euro prices higher. However, the achievement of area 1.135, where the second price target is located, has caused a sharp retracement of prices.
At this point the key level is located in area 1.116 / 1.117. Should the next sessions close below these levels we could witness a bearish acceleration towards the 1.092 area. Otherwise there would be a new attack on the resistance in the 1.135 area. The breakdown of this area at the end of the day would trigger quotations up to 1.1642 (III ° price target).
In favor of the bulls, we note that support in the 1.116 / 1.117 area is holding up very well. In the next few days, therefore, monitor this level very carefully.
EUR USD: bullish projection in progress on the daily time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
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Weekly time frame analysis
Nothing to add except that the resistance in the 1.1353 area continued to fourth attempt to break the consecutive rise. So for next week. support in area 1.10795 must be monitored very carefully.
EUR USD: bullish projection in progress on the weekly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
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Monthly time frame analysis
From the beginning of 2019 the euro dollar exchange rate is in the range 1.07914 – 1.12819.
Should the closing on 30 June be higher than 1.12819 the dollar would be overwhelmed by the euro. Otherwise a return is expected in area 1.08.
EUR USD: ongoing bearish projection on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
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Conclusion
The dollar is ready to take over the euro
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