The euro stays very stable against the dollar and continues to hit record high after record high. It still looks very bullish and at least one more new high above 1.5904 should be expected. The problem here is the fact that I still can not rule out one more fall below todayâ€™s low 1.5685 before the expected new rise. On the other side if such a fall indeed occurs and if it is very sharp and fast, this could be a signal that 1.5904 is a temporary high and that a correction of the most recent rise has already started. With an eye on this I prefer to be neutral at the moment. If we see a new rise above 1.5904, the todayâ€™s low becomes the key support for the validity of the uptrend. In a case of such a rise, one should expect a re-test of the psychological level 1.6000
Trading strategy: 10:27 EST; 15:27 GMT
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.