Forex : EUR/USD

Posting it’s best weekly close since January 2010, the Euro should test last October’s high at 1.4280, and if taken out an advance to 1.4420 should follow.

Trade View

•The Euro is trying very hard to test last October’s high at 1.4280, but closed at 1.4221, and formed a classic double top. Unless 1.4280 is taken convincingly early week, there is some risk the Euro may slide back down to 1.4080 or so.

• If there is some really bad news in Euro land, or the ECB fails to raise rates then we can expect 1.4000 to fail, and the Euro to head right back to 1.3800 or so.

• However the Euro does have a chance to rally to 1.4420 or so if news flow is kind, and by the looks of the week chart, a top has probably not been formed yet.