Another currency I’ve been keeping a closer eye on is the euro, basically the inverse of the US dollar index ($DXY). Where the dollar looks to be in the process of establishing a major (long-term) low on its monthly chart, though this is only September 1 and there are 29 more days to go before we get a clear signal. The flip side of the coin is the euro, as it posted a new major high of 1.20099 Tuesday before falling to a close of 1.19090. And just as the greenback’s monthly stocahstics are in position for a bullish crossover below the oversold level of 20%, the euro’s monthly stochastics are nearing a bearish crossover above the overbought level of 80%. The last time this signal was seen was at the end of February 2018 as the euro posted a major bearish spike reversal, the combination indicating and confirming the long-term trend had turned down. If the early September mark is indeed the major high, the downside target range for the euro is 1.1485 and 1.1161. For now, with both currencies, the anticipation of major trend changes is keeping us waiting.
Stay tuned.
