$EURUSD in trouble again?

Again we are at a critical level. 82.00 level has been tested numerous times. Interestingly RSI 35 level has also acted as support at the same time. Now CCI is also pointing up. All these suggest that DXY most probably will reverse and test 82.50 one more time. In case it breaks EURUSD will again be testing 1.2880. 84.00 has been long waited target for index. I have a strong feeling that this time we will reach this level. Looking at the fundamentals; The pace of first-quarter 2013 real consumer spending will likely strengthen to 3% from the 1.8% that occurred in the fourth quarter of 2012. So Dollar is not too much in trouble. Let's take a look at the weights of the currencies forming the Dollar Index:

* Euro (EUR), 57.6% weight
* Japanese yen (JPY) 13.6% weight
* Pound sterling (GBP), 11.9% weight
* Canadian dollar (CAD), 9.1% weight
* Swedish krona ( SEK ), 4.2% weight
* Swiss franc (CHF) 3.6% weight

Japanese yen is getting ready for a correction even though the trend is strong and definitely up. With all these in mind, we can say that EURUSD will be testing it's lows again.



The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.