The decline of the euro against the dollar may only be at the beginning

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.

Euro Dollar: ongoing bearish projection on the daily time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.

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.

euro dollar

Euro Dollar: bullish projection underway on the weekly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports the BottomHunter signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.

euro dollar

Euro Dollar: ongoing bullish projection on the monthly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.

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