I remain firmly bearish on the euro as I anticipate continued buying on the US dollar despite Yellen's hinting toward a hold in raising rates in September this week (please read : www.tradingview.com/...a-USDOLLAR-breakout/). If consumer price data supports the dollar this afternoon, I think the euro may break the $1.08 level at the beginning of next week. Officially, I see the technical support at $1.0840, but I'd like to see a break below $1.08 just to be safe in order to target $1.05 by the beginning of August. I'm watching the Dow Jones-FXCM US Dollar Index for a bullish signal above 12,040 points to validate a bearish signal on the euro.
If the support doesn't break by the beginning of next week (dollar weakness following the US CPI data will obviously limit the immediate downside potential), I'll be waiting to see what happens around $1.0950 as this is the first key resistance I see.
If the support doesn't break by the beginning of next week (dollar weakness following the US CPI data will obviously limit the immediate downside potential), I'll be waiting to see what happens around $1.0950 as this is the first key resistance I see.