FXstreet.com (Barcelona) - The Euro is consolidating quite neatly around 1.5000 and bullish momentum remains steady, according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, who foresees another bout of Dollar weakness by year end.
The Euro remains steady at levels prior to October 2008 decline, says Elliott and bullish momentum remains steady: Consolidating neatly around the psychological 1.5000 for a fifth consecutive week. The Euro is now back up to levels last seen prior to October 2008's meltdown, is not overbought, and bullish momentum remains steady at the sort of levels established since May.
Over the year end, Elliot expects the Euro to take advantage of another bout of Dollar weakness: Over the year-end we continue to expect another bout of generalized US dollar weakness, a feature that is likely to be repeated again and again over many months. The Euro will likely be somewhere in the middle of the pack, neither the best performer or the worst (which are of course those pegged to the greenback).