Euro markets fine softness again during the Friday session

The Euro has fallen a bit during the Friday session, as we continue to see a lot of softness in this market. We are currently trying to break down through the last vestiges of support at the 1.17 level, which opens the door to the 1.16 level below, and then eventually the 1.1550 level which is a complete wipeout of the previous uptrend and move higher. We are well below the 61.8% Fibonacci retracement level from that move, and my experience has told me that typically we will wipe out the entirety of it once this happens. I prefer selling rallies as they show signs of exhaustion, especially near the 1.1750 level above, and the 1.1850 level after that.

Don’t get me wrong, there will be rallies occasionally, but those will be opportunities to take advantage of the strength of the greenback overall and of course the interest rates going higher in the United States. Beyond that, we have concerns about the Italians in the European Union, so I think that continues to put a bit of the bearish weight around the neck of the Euro in general. I think at this point, it’s difficult to get excited about rallies, but I think if we break above the 1.1850 level, it’s possible that we could continue to go higher, perhaps reaching towards the 1.20 level after that. However, I think it would take a significant amount of attitude adjustment to see something like that happen. I believe the summer will continue to be good for the greenback.