EURUSD Euro to US Dollar Weekly Chart; 3-Year High for Euro; W Pattern Bottom

The euro is moving higher sending the US dollar index lower. A higher euro will hurt Germany's export-driven economy which is the economic engine of Europe. ECB President Draghi is more concerned with each tick higher in the euro.

Interestingly, however, Draghi's lieutenants are talking slightly hawkish to the media about QE ending in September. Draghi may be orchestraing a rise in the euro so he can ride in on a white horse this year professing dovishness which will bring the euro down and basically keep it on an even kilter all year long. The central bankers are in control.

The W pattern bottom occurs which is a very bullish setup and price breaks out at 1.14. The height of the W is 0.09 or 0.10 so adding this to 1.14 is 1.23-1.24. The euro is almost at the 1.23-1.24 target to satisfy the W pattern. The euro is at 1.12270 as this message is typed Monday evening in the States.

The ADX shows that the collapse in the euro in 2014 was a strong trend lower but in 2015 the euro recovered to begin the 2-year sideways channel. A price broke up and out from the W pattern bottom, the ADX shows that the trend is strong to the upside. The ADX is slipping now and that strong uptrend may evaporate.

The stochastics are overbot. The red lines sow neggie d wanting the euro to pull back lower to digest the gains. The euro has momentum, however, and momo always seems to pop price a bit higher as it tries to top. The euro may target that 1.23-1.24 area which also happens to be strong congestion from 2014. The euro is at levels not seen in three years.

The top standard deviation line is violated so the middle band at 1.185, and rising, is on the table going forward. The euro may chop sideways in this 1.22-1.24 area for a week or two, then weaken and roll over to the downside. The US dollar index moves inversely to the euro. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.