Euro keeps the buy-the-dips trade intact

The week started with two days of losses

The buy-the-dips trade paid off for the euro bulls this week. US dollar strength hurt EUR/USD on Mon/Tues as the pair fell to 1.1119 from last Friday's close of 1.1198.

From there, the story slowly changed as the euro crept higher before surging above 1.12 from 1.1160 in the past two hours.

In the big picture, the ability to stay above 1.1100 this week was the signal. Finding a base there validates the rally since the French Presidential election and keeps the buy-the-dips trade intact.