The Euro shows no sign of weakening and touches two and a half year highs against the Dollar in the wake of the ECB’s avoidance of further stimulus, signalling some confidence across the region. The single currency, by many banks was dubbed as one of this year’s losers, does not look like it is running out of steam in the near future. There is fundamental support for Euro-Dollar because you have a far larger account surplus in the euro zone compared to the US, which has a deficit.
Alternative scenario: Below 1.384 look for further downside with 1.3795 & 1.3765 as targets.
Comment: the RSI is well directed. The pair is rebounding above its support as the RSI is well directed.
Supports and resistances: