The unloved euro ETF is facing a critical multiyear support line and some technical analysts are upbeat on the currency due to bullish price patterns and bearish sentiment extremes.

For CurrencyShares Euro Trust (NYSEArca: FXE), $120 a share seems to be a key battleground area where bulls could make a stand.

From a technical perspective, Chris Kimble at Kimble Charting Solutions sees a bullish “falling wedge” pattern in the euro that could trigger a rally.

He also notes sentiment on the euro is currently very low at only 25% bulls.

“For the last few weeks we’ve been talking about the potential for the euro to get decent rally going from down here. But we’re still waiting to see a confirmed breakout above some key levels. The good news is that we keep testing, and the more tests of resistance, the better our chances,” adds J.C. Parets at All Star Charts.

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