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The Euro has spent much of the past 2 years trading in a down-trend.
Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.
Big Test In Play for the Euro
The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).
If the Euro can succeed in breaking out at (3), it would be bullish. As well, a Euro breakout would likely mean a weaker US Dollar. And this would send a positive message to precious metals and commodities bulls.
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