Euro (FXE) - Testing Long-Term Support
Above is a weekly chart of the Euro (FXE) and as you can see this currency has been under heavy selling pressure since last November. Right now the Euro is in the process of testing major long-term support. I know FXE slightly closed below the support level, but I consider this level to still be holding. I view this area as a zone of possible support. Notice the heavy weekly volume we are seeing come into the market. It will be interesting to see next week if this level holds or not.
5 comments:
Kevin,
Do you see a bounce in the market into options Friday next week?
Thanks,
-Traderwannabe
Thats hard to say... right now all I see is weakness but things can change.
Kevin, it's a welcome sight for me to see such dollar strength compared to the euro. Of course, it's not all flowery since it means our exports are more expensive, but I think that's outweighed by the boost to consumer purchasing power which makes up the bulk of our economy.
Thanks for the cool blog. Volume can usually be interpreted two ways, both of which would be a correct interpretations even though one ends up being right and one wrong. That's just one of the problems with charts. Usually, in situations where it appears, based on volume, that support is entering the market and sellers are having to liquidate more to push the market lower, I generally use the closing price to determine whether or not one is winning out over the other. In this case on the weekly it looks bearish because of the weak close. On the daily it looks like a breakdown that ran into support, support that could hold, and if that support was found a little lower one bar later with a lighter volume breakdown then I would look for a squeeze higher, however I think in this case sellers are still in control and could drive this lower. Of course, this is assuming that volume from this ETF gives us an accurate representation of supply and demand within the euro currency.
Thanks again, for a cool blog.
Support level has broken last Friday on the spot fx. However it has rebounded today. I do think that any rally is a sell for EURUSD.
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