Tuesday, October 22, 2019
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Euro reversal or retracement?

Euro Notes - Econ Alerts

Earlier today the Euro experienced a surge in value against the Dollar and Yen, this was apparently due to the new Greek finance minister Yanis Varoufakis reassuring his country’s creditors that Greece is not running away from paying back its debt (which some economists assumed may happen when the new ‘anti-austerity’ party got elected to run the country), but instead they want to link Greece’s debt repayments to the economic growth of the country.

But could this appreciation of the Euro be a trend reversal or just a retracement?

Using simple support and resistance levels we can see on the daily charts for the EUR/USD and the EUR/JPY, that the price has found some resistance on a previously broken support level (blue line).

 

I will be looking for price to close above 1.1540 for the EUR/USD and above 135.00 for the EUR/JPY before I will start to consider this move a reversal.

 

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