Have just checked how EUR is doing on a weekly chart based on an almost aptly timed question from @SimpleEnglish.

First, I don’t know what the (fundamental) reason is behind EUR gaining strength, since Europe is just as rotten financially as the US or Japan. Second, I would not advise you to take my analysis as a basis for your investment/trading decisions.

First thing first,

we need to see what our beloved charts are showing us:

There are two things that must struck your eyes dear reader. First – the small red circle – showing how large traders are turning north from full out selling. Thus the COT (aka Commitment of Traders) chart for the EUR futures contracts shows lack of commitment to push things (EUR) further (down). The second is the psychological 1,2 mark (support marked with thicker red line) where the EUR turned tails to the void and came back a bit. However the third thing to notice is that EUR has found a quick resistance at the 1,25 mark (thiner red line) after just 2 up ticks.

All in all I believe the EUR will still have a hard time to get in shape.

Enjoy your weekend folks,
Dez

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