I am posting this monthly chart of the EUR/USD following “My DXY Trading Plan” from yesterday. While doing some in depth analysis earlier this session, I had realized that the monthly EUR/USD is quickly closing in on some major confluence of technical levels that could create a bounce. Let’s take a look:
There are a few key points about this chart I would like to point out:
- We are approaching the 127% extension of the 2005 low to 2008/9 highs at 1.0434
- We have a fairly clear down channel (yellow) and we are near channel support.
- Uptrend (minor) line (yellow) also from lows in 2000 and 2001.
- RSI (monthly) is reaching oversold levels not seen since 1997
Obviously, getting long the EUR/USD down here is a little dangerous. However, if you are in the camp that Greece will not leave the Eurozone and fall into the Agean Sea in the coming weeks (joke), perhaps you could catch a bounce near current levels after the DXY makes one last push higher!
Blake Morrow
Chief Currency Strategist
Disclaimer: I have no EUR/USD position, but can not guarantee I won’t in the next few trading sessions.
Recent Comments