EUR/USD 1.15 Remains Key Level

By: Richard_Cox

For most of this year, the Euro currency has been one of the weakest assets in any of the financial markets.  This is significant for a number of reasons because there have been very few assets (of any type) experiencing more weakness across the same number of denominative measures.  Against the British Pound, the Euro has quickly weakened to the 1.40 mark but there has been even more pronounced weakness against the US Dollar.

“Most of the market is still concerned with the possibility of a Greek exit,” said Michael Davis, markets analyst at 4K Research.  “If this occurs, there will be a high level of uncertainty with respect to what lies ahead for the European monetary union.”  of course, uncertainty is almost never good for an asset and this makes it much more difficult for investors to hold onto the Euro currency for an extended period of time.  Many investors have used these trends as a basis for a positive outlook in the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP).  But when we look at the EUR/USD itself, we can see some very specific price levels that can be used for trades.

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EUR/USD - Euro vs. US Dollar

Critical Resistance:   1.15

Critical Support:   1.0560

Trading Stance:  Sell Below 1.15

EUR/USD Forex Strategy:  Momentum in the EUR/USD is still negative but if we can see a clear break of the 1.15 mark, there could be rallies ahead for the Euro.

The EUR/USD has shown some significant trends for most of this year.  But there is some reason to believe that some of these trends could change if the Euro is able to propel itself above some key resistance levels.  Of course, we will need to see a sustainable move and not a simply blip higher.  Specifically, the main area to watch is the 1.15 area, as this is an area of historical resistance and psychological importance.  If there are enough stop losses placed in this area, we could see some significant moves higher if a majority of the market starts to reposition itself.  For these reasons, it will continue to be important for traders to monitor these price areas in order to gauge where the next trend is headed.  So keep these factors in mind when looking to trade in assets that are directly related to either the Euro or the US Dollar.

By Richard Cox

© 2015 Richard Cox - All Rights Reserved

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