The Euro (EUR) has gone through the roof in recent weeks, this morning price action sits around the 0.5265 (1.9000) area after coming from 0.5500 (1.8170) just 2 weeks prior. Germany’s incredible defence and infrastructure spending plans in the hope of breaking a deep recession have certainly improved the currency. A conservative country usually, they may commit 1T in efforts to fire up the economy and rebuild their military capacity. We think the EUR has been overbought and we could see the start of a significant reversal in the coming days.
Current Level: 0.5250
Support: 0.5110
Resistance: 0.5360
Last week’s range: 0.5249- 0.5391