A Quick and Bullish Technical Look at the Euro
- Posted by Greg Harmon
- on December 14th, 2012
Since July 24th the Euro has been rising against the US Dollar. This in the face of continued concerns about the situation in Spain and Greece, but propped by the dysfunctional environment in Washington. But after that run higher it currently sits at a very interesting level from a technical perspective, meaning a tradeable event. From the chart below the Euro has been building a potential Inverse Head and Shoulders pattern, with a break of the Neckline in black as the trigger. A move over that trigger creates a price objective of at least 1.3536. Your first tradeable event. But a
failure is also interesting. The Fibonacci Fan Lines show that the tops of that down trending resistance line have occurred at key Fibonacci Speed levels. The October 17th top at the 61.8% and the December 4th top at the 38.2% Fan Lines. Each top has been preceded by a lower low. A failure at the Neckline could be played for another in the series. The fact that the latest touch at resistance comes from a higher low gives weigh to the case for a break out higher. But only price pays. See the reaction and then trade.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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