Eurozone struggles throw fuel on dollar rally

The U.S. dollar reached an 11-month high on two very positive days, Aug. 19th and 20th respectively(NYBOT:DXU4). While the Dollar Index is at its highest level since September 2013, the Euro broke the 1.33 level for the first time since that same time. Since the first week of July, the dollar is up 3.19% while the euro is down a little over 3%. The charts below show the action in the euro on both a long-term and short-term timeframe. The long-term chart shows a solid resistance level that has held since 2007, most recently hitting 1.3524 and reversing. The shorter-term chart shows we have broken through the 1.3479 support level that has been in place since January 2012.

Long-Term Euro Chart

Source: Bloomberg 8/21/2014.

Short-Term Euro Chart

Source: Bloomberg 8/21/2014.

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