Since the beginning of April, prices have been moving within a wide trading range defined in the lower part by area 1.0775 and in its upper part by area 1.0984. It seems incredible, but every time the prices touch one of the two levels, there is immediately a quick turnaround of the current trend. If you think that there has never been a daily closure that broke one of these two levels, then it is almost unbelievable.
It is understood, however, how when this swing (periodic movement between two well-defined levels) breaks then the prices will undergo a strong acceleration.
Downward or upward?
In a previous article, we wrote that Germany could trigger the fall of the euro. However in cases like these one must always be cautious and study the graphs very well before undertaking any type of investment.
Euro dollar exchange rate: forecasts for the coming weeks
The projection in progress on the euro dollar exchange rate (FXEURUSD) is bearish and has already broken downwards the strong support represented by the 1st price target in the 1.12772 area. The prices, however, found a valid support in the 1.0793 area which has continued to resist bearish pressures since the beginning of the year. The break of this level would open to the achievement of the 2nd price target in area 1. Vice versa, the break of area 1.12772 would raise the prices up to area 1.2.
It should be remembered that even on the monthly time frame the projection in progress is bearish and that the prices are in close contact with support in the 1.0791 area.
Since it coincides with the monthly close next week, a close on Friday May 29 above 1.0791 would give the bulls a good chance to redeem themselves during the month of June.