Mid year look at euro dollar: despite optimism from dollar bulls and mutterings from eurozone politicians the euro shows little sign of wanting to retreat from the 1.6 level. Indeed weekly and monthly charts simply confirm there is no “top” in sight and we are merely consolidating before climbing higher. The question then becomes how much more exchange rate pain can the eurozone take and how much lower can the dollar sink?
Fundamentals and political interference aside we are potentially looking at a climb for the euro to 1.67 or even 1.70. Significant weekly lines of support and resistance to watch include: 1.5285 and 1.6020. Only a close below 1.48 would force a complete rethink.
