The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullish. As well, a Euro breakout would likely mean a weaker US Dollar. And this would send a positive message to precious metals and commodities bulls. Stay tuned!

This post was originally written for See It Markets.com. To see the original post CLICK HERE

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past