Wednesday, 5 November 2014
Euro to plunge against the US Dollar
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The EUR/USD has hit its Support LIne (Line joining Bottoms).
Chart logic would normally suggest that it should now bounce off this Line to have a rebound against the US Dollar.
However, since the Resistance (i.e., Top) Line and Support Line are converging, eventually there must be a break-out either upwards or downwards.
Good economic performance in America indicates an Imminent interest rate rise in the Dollar zone, while Europe continues its Zero Interest Rate policy. This can only mean that the Euro will fall further against the Dollar.
A break-out through the Support Line could, therefore, be imminent, as the Euro plunges further against the Dollar.