EURO has taken a beating of late due to all the negative news coming out fo Europe. Whether it be the financial predicament of Greece of Spain, or the handling of the issue by Germany and France, the EURO appeared to have only one future…down.
However, markets rarely just move in one direction without some kind of correction. We cannot know for sure what the future holds for the EURO, but we can watch the technicals to anticipate the ebb and flo of the currency.
The EURO is technically due to make a cycle bottom for JULY. With JULY currently the major low on the monthly chart, it is important to look at the weekly and daily time frames to determine if they also are technically due to bottom.
They are.
On the daily time-frame, prices rose last week to exceed the swing top formed back on 7/19. This is a good start to what may be the bottoming of the Euro and the start of a bullish correction.
Historically, the major cycle in the EURO would suggest that a monthly bottom for JULY would likely see the trend remain bullish overall into OCTOBER. Therefore, it would be a good idea to be ready for this potential change in trend that is technically setting up right now.
Cheers!
