Breakout Day for the Euro?
Could it be “breakout day” for the euro? The euro is breaking down out of the doji range I alerted you to yesterday. See how today’s daily candle closes at 5pm EST. Click on the chart below to enlarge it.
A downside breakout would be the most likely because the trend was heading downward before the range happened. So breakouts are more likely to continue in the direction they were in before the range than to reverse against the previous trend.
Also, the ECB just lowered interest rates in Europe today. That’s generally a negative for a currency.
Additionally, ECB’s Draghi is acting like they won’t do any more bond buying programs. The markets took that in a negative way for sure this morning. That has weighed upon stocks and the euro this morning. All of this of course is giving the “defensive dollar” a boost though.