Germany reformed its debt brake and moved towards fiscal expansion, and over the weekend, President Trump indicated the possibility of ending the conflict with Russia. As a result, the Euro was bought near the 1.09 level and closed there.
Since March, the Euro has risen more than 500 points from around 1.04 to 1.0947.
However, the price was capped near the high set in November last year, 1.0936, forming a possible double top pattern.
Depending on the outcome of this week’s FOMC meeting, if the Euro breaks above the 1.09 mid-level, it could aim for 1.12.
However, Germany’s fiscal expansion is a double-edged sword, and due to the cooling European economy, we expect the Euro to decline from the double top resistance.
This week’s Euro/Dollar forecast range: 1.0940 to 1.0720 (38.2%, 200MA)
Note: The above information does not guarantee profits. Make your own decisions when trading.