Euro/Dollar - Medium Term Chart View - Trend is Higher

With the US Dollar breaking down, we get a sense of direction for what the Euro might do over the medium term. A look at the monthly chart sees the price rebounding off the trend line support and potentially targeting the upper boundary of the channel going back to August 2006. This comes in at around 1.21 where we can expect to find resistance.

In the short term we may see small pullback however I believe the primary direction has changed over the medium term.