EUR Index faces key resistance levels

EUR Index faces key resistance levels

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A messy break of the bearish channel has now been confirmed and we are confidently pointing higher, however there are still key levels that need to be broken. Although EURUSD has broken the ECB rate cut highs, the EUR% index is still currently at those very same highs as a result of cross pair volatility, such as EURGBP and EURCHF selling. This is interesting because it makes the Euro seem stronger than it really is when viewing the industry benchmark EURUSD, which usually sets alarm bells ringing and heightens my attention for a possible reversal if the EUR% index fails to break the ECB highs. We are also towards the top of the currently defined range for the new bullish channel for the EUR% index so the cluster of resistance may prove to be a tough nut to crack. This makes the risk of profit taking to bring us lower within the bullish channel quite high and brings into focus the 1.3665 support trend line for the index which would be a key level for trend continuation higher. I am bullish EUR% although it is not a clear cut picture until we break above resistance
**EUR% Index Resistance: EURUSD 1.3700, 1.3750**
**EUR% Index Support: EURUSD 1.3665, 1.3633**
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By John Adam
John Adam was one of the Invezz Founding Partners & Lead Editor's up until 2017. John has an unmatched breadth and depth of experience in all things investing, and we wish him the best in his pastures new.
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