Currencies

The euro comes back to give a bullish signal

The correction that has registered the euro when dealing with the dollar from the area of 1.21 to 1.16 made to think to more than one that it had put an end to its upward trend. Our medium term vision during this time has not changed, maintaining the forecast of seeing around 1.25 the next quarters. The mentioned correction does not have reached nor the 38 % of the previous rise, bullish strength symptom, and, also, this week the crossroad with an upward trend has broken the bearish service channel that framed its movement from September. Certain member comments of the ECB, less dovish that until recently, have returned to give confidence in the currency. If this time are not amended to themselves, the euro will continue its advance.

Source: Bankia Studies