Euro Breakout Presents Buying Opportunity as US Inflation Concerns Mount

The US Federal Reserve's recent FOMC meeting has led to concerns that it is behind in fighting inflation, which could be bearish for the greenback. According to Barchart, this presents a buying opportunity in the December Euro currency futures.

On the daily bar chart for the December Euro currency futures, this week's price action has produced a bullish upside 'breakout' from a basing area at lower price levels. The moving average convergence divergence (MACD) indicator is also in a bullish posture, with a bullish line crossover signal that occurred in early July.

Fundamentally, the recent FOMC meeting was not digested well by the marketplace due to concerns about the Federal Reserve's ability to combat inflation. This has led to a potential buying opportunity for the December Euro currency futures above chart resistance at this week's high of 1.1597.