For a week now the euro has been moving downward. Tentatively, its current support level is at 50.0 of the Fibonacci long-term correction. In case the level is reached, the lower Bollinger line will provide an additional support. Last week’s rally reaffirms incompetence of technical and fundamental analysis on the European currency. Technically, there is a continued side movement. If we consider the euro’s movement as a flat, we can expect that the euro will gain this week.
The stochastic oscillator may provide an additional driver for the euro’s increase as its lines have reached the overbought area. Roughly speaking, an uptrend movement of the euro should start today or tomorrow.
