Euro in trouble as U.S. dollar looking to recover

The U.S. dollar will strengthen against the euro and commodity-backed currencies by less than previously estimated over the next three months

The U.S. dollar will strengthen against the euro and commodity-backed currencies by less than previously estimated over the next three months, UBS AG said, revising earlier forecasts. The greenback, which has dropped against all 16 of its most-active counterparts this year, will rise to $1.40 against the euro in three months from $1.4790 as the bank said.

Trading Tactics

Sell EUR/USD on signs of a double top.

The buying point is at 1.4840; previous resistance is the take profit at 1.4920;
Fibonacci 23.6% is the stop loss at 1.4778

The selling point is at 1.4776; Fibonacci 61.8% is the take profit at 1.4700; previous resistance is the stop loss at 1.4820

Technical: Euro breaks the previous support and forms a lower resistance. A move back lower could set up a test of 1.4700

EUR/USD (Hourly Chart)