Euro jumps from critical zone
The euro tested and rejected a massive level in the aftermath of the referendum. The bulls got the best scenario they could have hoped for as the reforms were rejected and Renzi pledged to resign.
Yet after the kneejerk lower to 1.0506, the euro has jumped up to 1.0688 and touched a high of 1.0730.
The closing level will be critical on the chart but the reversal to a three-week high is extremely positive for the bulls. In addition, December is easily the strongest season month for the euro.
If something can reverse and rally on bad news, it's probably going higher. And in the bigger picture, the US dollar will be due (at some point) for a bit of a pullback.
