After report by JP Morgan which has revised upward the view of the green currency, the decline of the euro against the dollar could only be at the beginning.
If last week, in fact, we wrote that “the key to understanding what will happen to the euro-dollar exchange rate passes for the daily time”, the first session of the week gave a very clear response. The euro is weakening and has developed in that direction throughout the week.
If the decline of the euro against the dollar could only be at the beginning, what are the objectives according to the graphical and forecast analysis?
Exchange closes on 25 September euro dollar (FXEURUSD) was at 1.1632 down by 0.35% compared to the previous session and down by 1.76% compared to the previous weekly close.
As we said earlier, the session on Monday 21 September dictated the line for the whole week with a fall of 0.65%. The closing of the last session of the week gave the final blow to the bulls with a close below the all-important support in the 1.16603 area (I price target). At this point, unless there is a quick recovery, prices are destined to move towards area 1.14, first, and area 1.1144 then.
Medium-long term scenario
At the moment the current trend on both weekly and monthly is bullish. Only weekly or monthly closings below 1.13505 and 1.14866, respectively, would undermine the bullish scenario.
As usual, an anticipation of what could happen will occur from the daily where the level in the 1.14 area is of fundamental importance.