The Euro – Clinging to Life?
Reply
The Euro bounce into mid December has resistance at 123-124 followed by 128-129. The critical number at year end will be 12150. A year-end closing beneath this level will be long-term bearish. However, support will lie at the 118-120 level next year. A closing above 121.50 will suggest that the euro is not ready to collapse at this time and we may need to wait until 2016. The key resistance will stand at the 135-137 level for 2015. The critical support lies at 116. Once this area is broken, then the Euro will collapse to retest the par level against the dollar. We can see that we have a convergence of support this year at the 122.70 area from a technical perspective. This lends more significance to the 121.50 level for the year-end closing.
