The Euro Breakout/Breakdown I Told You Was Coming Just Happened!
On the 7th and 8th of last week, I told you about a coming opportunity in the euro which had to do with a recent pattern that its held over many months now. Here was the original chart below. Click on the chart to enlarge it.
When the euro would begin to form dojis (indecision patterns that look like a “+” on the chart, the range would continue for only a handful of days and then there would be a sharp breakout of the euro.
Well, that breakout has finally come. Check it out in today’s EUR/USD daily chart below.
The breakdown of EUR/USD shows that the overall downtrend is still intact but it also shows that investors still aren’t buying the idea that the worst is behind for the Eurozone and its currency.
So for now, the U.S. dollar reigns against the euro for a while longer while Europe struggles to get its act together.