Time to buy USD? Is the Euro rally over?

Just 2 weeks ago the Euro reached a new high versus the US Dollar when it climbed up to 1.16 on May 3rd. That was a dangerous move – if the Eur/Usd can break 1.17 (and also the 100 Weekly MA at 1.1656) it would lead to a free road to 1.20 and even 1.22.

But Euro did not stay there long. The USD bulls took control since and here we are again at Eur to Usd at 1.1300. The Euro could not rise on soft US economic data and could not hold on good US data.
The question now is – “Is the Euro rally over and it’s time to sell EUR/USD?”

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Technically – definitely not! Look at the chart below. The Euro to Dollar bullish trend is still intact. The next serious support level is at 1.1059 and that’s still far away. Even the Eur to Usd will break that level there is still the major support 1.0816.

EURUSDWeekly 16-5-2016Fundamentally – It’s a wait and see. The next ECB and FED rate decisions will probably determine the direction of the EURUSD. The ECB meeting will be on June 2nd. The FED meeting on June 14.
If the ECB and FED will stay on hold… then we might see the Euro flies again… but this time it could be BIG.

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