FXstreet.com (Barcelona) - The EUR/USD was higher today and modestly higher for the week. The pair has been trading inversely with risks and the outlook for the financial sectors. The EUR/USD has spent the last three weeks testing the 1.24-1.25 area support and the resistance from the downtrend.
The EUR/USD trend is down, and the driver has been collapsing stock markets, said Hans Nilsson, analyst at CMS Forex. The pair could be building a bullish W-formation. If the support from the double bottom at the 1.24-1.25 area holds and the downtrend is broken, the pair could rally strongly.
The stock market is trying to find a bottom; the EUR/USD is likely to follow the direction in the stock market.